Redmond investment advisor sentenced to five years for wire fraud, falsifying records

He will also pay back more than $4 million in restitution.

Dennis Gibb would approach investors, many of them late in their lives, with a promise of a secure and modest payout. Not with assurances of an outrageous return, often featured in Ponzi-scheme pitches, according to the U.S. Attorney’s Office.

Instead of the promised “secure” return, more than 15 investors were robbed of their money. And after a March guilty plea and June sentencing Gibb, a longtime investment advisor in Redmond, will spend five years in prison, forfeit a money judgment of $3.19 million and pay back about $4.23 million in restitution.

This includes about $1.77 million that remained in the Sweetwater Income Flood LP Fund, one set up by Gibb in 2008. Gibb will turn these funds over to the Securities and Exchange Commission (SEC) for disbursement to victims as part of the restitution order.

“[Gibb] entered into a scheme and deliberately, intentionally and knowingly stole money from people who came to him,” said Chief U.S. District judge Ricardo S. Martinez, at sentencing. “Many victims, late in their lives, entrusting him with money they intended to get them through the last years of their lives.”

The charges — one count of wire fraud and two counts of falsification of records — stem from conduct that began in 2007, when Gibb began soliciting investors looking for steady retirement income, according to charging documents.

From 2007-18, 20 investors put about $7.3 million into the fund. And Gibb allegedly used $3.1 million of this money for his business and living expenses including mortgage and car payments.

Prosecutors said Gibb also falsified documents given to the SEC, when they began their investigation into Sweetwater and provided victims with false tax documents, causing some victims to pay taxes on non-existent financial gains.

In April, Gibb’s attorney Mike McKay said Gibb accepted full responsibility and was apologetic for his actions.


In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@redmond-reporter.com.

To share your opinion for publication, submit a letter through our website https://www.redmond-reporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in News

A train route that would shuttle people between Eastern and Western Washington could tie in with the proposed ultra-high-speed rail between B.C. and Portland. Photo courtesy RobertStafford/Pixabay.com
State receives King County to Spokane rail study

It would take about eight and a half hours to reach the Inland Empire from Puget Sound.

Bret Chiafalo. File photo
Supreme Court says state can punish WA faithless electors

Justices: Presidential electors, including Everett man, must keep pledge to back popular vote winner

Gov. Jay Inslee issued new guidance allowing the resumption of self-service buffets, salad bars, salsa bars, drink stations and other types of communal food sources in Phase 2. File photo
Buffets and salad bars back on the menu in King County

Gov. Jay Inslee has revised rules to allow self-serve food areas in Phase 2 of the state’s reopening.

Brian Tilley (left) and Katie Dearman work the wash station Friday at Kate’s Greek American Deli in Everett. (Kevin Clark / The Herald)
Governor’s no-mask, no-service order begins across Washington

“Just do not ring up the sale,” Gov. Jay Inslee said about customers who do not don the proper masks.

King County homeless count: 11,751 people, up 5 percent from 2019

One night a year, volunteers spread out across Seattle and King County… Continue reading

Nurse Sylvia Keller, pictured with Gov. Jay Inslee, is on the front lines of the COVID-19 battle in Yakima County. Courtesy photo
Governor doubles down on mask rules

Inslee: Starting July 7, businesses do not serve those who do not wear a mask

State Capitol Building in Olympia. File photo
Politicians get pay raises, state workers get furloughs

A citizens panel approved the hikes in 2019. Unable to rescind them, lawmakers look to donate their extra earnings.

Starting July 6, three road paving projects to prepare for

Two full road closures and night paving work is coming to Redmond Ridge at Novelty Hill Road, near Duvall, July 6 through August

Human remains in West Seattle identified

Bags of body parts were found in a suitcase along a West Seattle beach on June 19.

Most Read