A 32-year-old rep in St. Louis and an associate have confessed to using $5 million in client funds to pay various business and personal costs.
The details of the scheme that Joshua Gould and David Rubin got stuck in are old news. Get a client to sign over funds, spend the money, repeat.
Before you know it, you've burned through $5 million trying to start various new ventures or pay back an earlier set of clients who now want to cash out.
Gould and Rubin have pleaded guilty to fraud charges and now face jail time up to 20 years per count.
But what's interesting is that Gould turned himself in. The psychology behind his crimes -- and we can call them that -- is never an excuse, but it's always educational to see where these problems emerge.
Those who have to monitor their colleagues or subordinates -- which is to say, just about everyone in the industry -- should take notes.