UNITED STATES ATTORNEY’S OFFICE

EASTERN DISTRICT OF MISSOURI

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March 3, 2011
For Immediate Release

FORMER WOODBURY FINANCIAL SERVICES

STOCKBROKER & ASSOCIATE INDICTED ON
MULTI MILLION DOLLAR SECURITIES FRAUD
St. Louis, MO: The United States Attorney’s Office announced the indictment of Joshua
Gould, a former stockbroker with Woodbury Financial Services, Inc. and affiliate of
Spetner & Associates; and David Rubin, owner and operator of two local offices of Coral
Mortgage Bankers Corporation.

Count I of the indictment alleges that between May 2007 and December 31, 2010, Gould
and Rubin embezzled approximately $1,500,000 from an individual solicited by Rubin to
provide funds for operating capital for Coral’s St. Louis operations. The individual was
assured that the funds would be held in a secure trust account, used as collateral for
Coral’s operations, and that the individual would receive regular interest payments. The
indictment states that between May 2007 and December 2008, the client provided Rubin
approximately $1,200,000 from his and his wife’s life savings. Rubin allegedly used
some of the funds to pay his own salary and to make payment of an out of court
settlement in a sex discrimination lawsuit. Rubin transferred the balance of the funds to
Gould. Gould allegedly used those funds for personal expenses including car payments,
mortgage payments, payment of substantial personal credit card bills, the renovation of
his personal residence, jewelry, and adult entertainment including substantial expenses at
the Penthouse Club and PT’s. Gould also allegedly used the money to finance start up
costs and operational costs of several business ventures including The Sports Nook, True
Hockey and Free Poker Experience. The indictment alleges that Gould and Rubin
prepared and gave the individual false account statements, including statements falsely
representing to the client that as of September 30, 2010, he had $1,126,365 in his
Investment Fund and $217,123 in his Family Charity Fund, when in fact all of the funds
had been embezzled, diverted and stolen by Gould and Rubin.

Count II of the indictment alleges that Gould embezzled approximately $3,500,000 from
numerous brokerage clients and the owners of the RARJI Trust. Gould solicited clients
of the Spetner and Associates insurance agency to move their investment portfolios and
retirement accounts from other brokerages to him at Capital Analysts, Inc., and then
Woodbury. According to the indictment, on multiple occasions, Gould processed trades
and the redemption of securities held in client accounts and accounts of the RARJI Trust
without the knowledge, approval, and authorization of the account holders, and had the
proceeds transferred into his own personal bank accounts. Also, as part of the scheme,
Gould falsely represented to his clients that Pacific Mutual Alliance, LLC and Apex
Alliance LLC were legitimate investment securities, when they were actually shell
companies that he had established and controlled.
Gould allegedly used the funds for personal expenses including car payments, mortgage
payments, payment of substantial personal credit card bills, the renovation of his personal
residence, jewelry, and adult entertainment including substantial expenses at the
Penthouse Club and PT’s. Gould also allegedly used the money to finance start up costs
and operational costs of several business ventures including The Sports Nook, True
Hockey and Free Poker Experience. Gould also engaged in a Ponzi type scheme by using
client funds to pay off other clients’ trade requests after he had liquidated their securities
without their knowledge.

Gould, 31, University City, MO, was indicted by a federal grand jury on one felony count
of wire fraud and one felony count of mail fraud. Rubin, 47, Chesterfield, MO, was
indicted on one felony count of wire fraud. Additionally, upon a finding of guilt, the
defendants will be subject to a forfeiture allegation, which will require them to forfeit to
the government all money derived from their illegal activity.

If convicted, each count of the indictment carries a maximum penalty of 20 years in

prison and/or fines up to $250,000. In determining the actual sentences, a Judge is
required to consider in an advisory capacity the U.S. Sentencing Guidelines, which
provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation, the Postal Inspection
Service, and the United States Secret Service. Assistant United States Attorney Hal
Goldsmith is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do
not constitute proof of guilt. Every defendant is presumed to be innocent unless and until
proven guilty.