here, Joshua Gould was accused by one of his customers of having stolen $700,000
from the customer's Woodbury Financial Services brokerage account
during Gould's employment at the firm. Regulatory documents indicated
that Gould admitted to Woodbury that he had stolen the customer's
money, which led to his termination on November 2, 2010.
Meyer Wilson has been actively investigating both Joshua D. Gould and Woodbury
Financial Services, Inc. in order to recover losses on behalf of defrauded
investors. A recent development in the case should aid in this goal.
Last week, Joshua Gould pled guilty to embezzling approximately $5 million
from numerous individuals, including several of his Woodbury brokerage
clients ("Guilty Pleas in Multi Million Dollar Securities Fraud,"
CBS St. Louis, April 29, 2011). David Rubin, of Coral Mortgage Bankers
Corporation, also pled guilty to the investment fraud. Both men must now
forfeit all ill-gotten gains. The illegally obtained funds will be returned
to the government, and will likely be used to pay restitution to investors
who suffered losses from the investment fraud.
According to the article, Gould and Rubin - over the course of a three-and-a-half-year
period - embezzled $1,500,000 from a retired client. The two men solicited
the funds from the client with promises of regular interest payments on
money that would be kept untouched in a secure trust account. Instead
of using the money as collateral for Coral's operations as they claimed,
Gould and Rubin stole the money and used it for operating expenses, personal
purchases, and to launch several businesses. Gould and Rubin also made
false representations to the client, which included providing him with
In addition to the investment fraud perpetrated with Rubin, Gould admitted
to embezzling $3,500,000 from several Woodbury brokerage clients and numerous
beneficiaries of the RARJI Trust. The majority of the defrauded investors
were retired senior citizens. Gould used the stolen funds to finance business
start-ups, fund his personal lifestyle, and make Ponzi-style payments
to other clients whose accounts he had already liquidated.
Gould's plea may strengthen our case against Woodbury. As his employer,
Woodbury had a duty to supervise Gould's activities. If that duty
was not adequately met, Woodbury may be held liable for compensating investors
who suffered losses from Gould's securities fraud.
If you would like to learn more about our firm's investigation into
this matter, or if you would like to learn how we may be able to recover
losses suffered as a result of this fraud, please call our office toll-free
and ask to speak directly to the firm's Managing Partner, Attorney
David P. Meyer. You may also fill out the online form on our website and
we will respond promptly.
Gould's sentencing date has been scheduled for July 22, 2011.