A former financial broker was sentenced to ninety-seven months in prison for his role in a Ponzi scheme that ultimately cost investors millions of dollars. Joshua Gould, 32, was also ordered to pay restitution of $4.3 million to the victims of his scheme Gould was indicted earlier this year on charges of mail fraud and wire fraud, which each carry a maximum prison sentence of twenty years.
Gould was a former registered financial representative at Woodbury Financial Services in University City, Missouri. He then joined co-defendant David Rubin at Coral Mortgage Bankers Corporation, where they solicited investors promising annual returns in exchange for funds to serve as collateral for Coral's operations. Yet, instead of using these funds to invest in Coral's business, Gould and Rubin used the funds for personal expenses. Gould also used investor funds to serve as start-up capital for several side businesses, including an online ticket sales broker. Gould would provide Rubin with money to be paid to investors as purported "interest" payments. When investors would direct that these "interest" payments be rolled into their existing principal investment, Rubin would pocket the funds. All told, Gould misappropriated over $4 million of investor funds.
Prosecutors had asked for a sentence commensurate with federal sentencing guidelines, which suggested a minimum sentence of ninety-seven months, while Gould's attorney had requested a downward departure from the guidelines. There is no parole in federal prison.