David R. Holst, 43, a mortgage broker in Tucson, Ariz., pleased guilty of fraudulently collecting $350,000 from mutual fund investor clients and recklessly, illegally gambling the money, the Arizona Daily Star reports. He accepted the charges of securities fraud and filing a false income tax return.

Holst admitted to setting up a financial advisory business that pretended to invest clients’ money in mutual funds. Instead, he took the clients’ money, lost it gambling at a casino, and subsequently doctored statements to make it look like he had created mutual fund accounts for the clients.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.