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Friday, January 28, 2011

Multimillion-Dollar Ponzi Scheme Roils the Orthodox Jewish Community of St. Louis

Posted By on Fri, Jan 28, 2011 at 2:16 PM

click to enlarge Not Josh Gould, but this is what he does these days. - IMAGE VIA
  • Image via
  • Not Josh Gould, but this is what he does these days.
These days, Joshua David Gould of University City dances in a Statue of Liberty costume to lure customers toward an income tax preparer. But the 31-year-old Orthodox Jew knows how to sing, too. To the feds, that is.

Gould, a former securities broker for Woodbury Financial Services, recently came clean to authorities and admitted to stealing millions of dollars from dozens of his coreligionist clients over the past two years. (The total may be around $4 million, according to several sources.)  

Gould is also the son-in-law of Jonathan Spetner, the well-respected third-generation operator of Spetner Associates, a local insurer).
  
No federal charges have been filed yet against Gould, and Assistant U.S. Attorney Hal Goldsmith isn't talking. But records show the Missouri Commissioner of Securities is looking into him.

And now the young man's attorney, Al Watkins, acknowledges that in the late fall of 2010, Gould "self-reported his crimes" to investigators and is "fully cooperating."

But why did he do it? The answer, Watkins says, involves enough intrigue for a 90-minute movie.
Albert S. Watkins, attorney representing Joshua Gould
  • Albert S. Watkins, attorney representing Joshua Gould
Gould grew up in Milwaukee and arrived in St. Louis in 2002. Within a couple years, he was working for Jon Spetner, whose daughter, Temima, he soon married.

Gould badly wanted to impress his father-in-law and provide his new wife with the standard of living she'd grown up with, as Watkins tells it. So when a pair of businessmen offered the young man a large chunk of change to invest in mid-to-late 2007, Gould jumped on it.

However, that money -- which eventually added up to $1 million -- had come from a third party, who was promised a high rate of return. Gould invested, but didn't make enough to fulfill that expectation.  

So first, he raided his family trust, of which he was a trustee. Then he started skimming off the accounts of the clients he'd picked up as a broker for Woodbury Financial, for whom he'd begun working in October 2008 (this was separate and distinct from his employment at Spetner, records show).  

"He was robbing Moishe to pay Saul," says Watkins.

Yet Watkins acknowledges that Gould did much more than that: He enriched himself too, using the stolen money, for example, to remodel his kitchen and pay the mortgage on his Amherst Avenue home, which sits in the Orthodox neighborhood of west University City.

Gould also dropped "tens of thousands" in east-side strip clubs, Watkins confirms, but hastens to clarify: Gould was majority owner of at least one online sports ticket broker called The Sports Nook.

Says the attorney:
"He was entertaining people that were going to help him in the Sports Nook and also potential clients for his financial clients. Let's not pretend that my guy was wearing a nun's habit while this was going on, but at the same time, do not assume the tens of thousands were spent for his own gratification. This was atypical behavior of a desperate man."
Gould was desperate for money from The Sports Nook, Watkins explains, because his work at Woodbury wasn't meeting the demands of the middle men who'd provided him that load of investment capital back in 2007.

When Gould suggested they all admit to the man who'd originally put up the money that Gould couldn't meet his end of the bargain, the middle men made "an explicit threat against his life and safety," Watkins insists.

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