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Coral Mortgage operator sentenced on multi-million dollar securities fraud

FOR IMMEDIATE RELEASE
March 23, 2012

St. Louis, MO - The United States Attorney’s Office announced today that David Rubin, employee and operator of two local offices of Coral Mortgage Bankers Corporation, was sentenced to 5 years probation, 6 months home confinement, 200 hours of community service and ordered to pay restitution in the amount of $1.2 million dollars.

According to court documents, between May 2007 and December 31, 2010, Rubin and co-defendant Joshua Gould embezzled approximately $1,500,000 from a retired individual solicited by Rubin to provide funds for operating capital for Coral’s St. Louis operations. The individual was assured that the funds would not be spent, would be held in a secure trust account, used only as collateral for Coral’s operations and that the individual would receive regular interest payments. Between May 2007 and December 2008, the client provided Rubin approximately $1,200,000 from his and his wife’s life savings. Despite his representations that the funds would not be spent, Rubin used approximately $250,000 of the funds for operating expenses, including payment of his own salary. Rubin transferred the balance of the funds to Gould. Gould 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 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 and Rubin prepared and gave the individual victim false account statements, including statements falsely representing to the victim 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.

DAVID RUBIN, Chesterfield, MO, pled guilty to one felony count of wire fraud. He appeared today for sentencing before United States District Judge Rodney W. Sippel.

JOSHUA GOULD, University City, MO, was sentenced last year to 97 months in prison and ordered to make restitution to the victims in the amount of $4,323,092.

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 handled the case for the U.S. Attorney’s Office.

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