David R. Holst, 43, a mortgage broker in Tucson, Ariz., pleaded guilty to gambling $350,000 from mutual fund investor clients. 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. Holst, who will be sentenced in federal court on Feb. 12, faces up to 25 years in prison and more than $1 million in fines.
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