Securities News Releases
Tuesday, August 12, 2014
Contact: Stephanie Fleming, (573) 526-0949
Kander Recovers $630,000 for Investors Defrauded by University City Man
Secretary of State Holds Second Firm Accountable in ‘Gould’ Case
Jefferson City, Mo. — Secretary of State Jason Kander today announced that Ohio-based investment firm Cincinnati Analysts has repaid more than $630,000 to eight investors who were defrauded by its former employee Joshua Gould.
Gould, who is now serving a 97-month federal prison sentence for multiple counts of fraud, worked in University City for Cincinnati Analysts from 2004 to 2008. After helping uncover Gould’s crimes, Kander’s office began an investigation of the firm’s practices. Ultimately, Kander’s office alleged that the firm failed to properly supervise Gould—a violation of state securities law.
As part of a new settlement of those allegations, Cincinnati Analysts confirmed that it repaid its eight victimized investors over the course of Kander’s investigation.
"My office advocates tirelessly on behalf of Missourians that have been victimized by con artists," Kander said. "Returning folks’ hard-earned savings is my number one priority in cases of financial fraud."
The agreement with Cincinnati Analysts is likely the final major development in the Gould case, coming just over a month after Kander announced a $2 million recovery for other investors whom Gould also victimized. That recovery—from Woodbury Financial Services, Gould’s employer from 2008 to 2010—was paired with an official censure, citing that Gould was able to rob clients of millions of dollars in part because of negligent supervision.
Gould’s list of victims is long, and as has been reported, includes family, friends and business associates. Known as affinity fraud, this type of scam involves exploiting relationships and shared characteristics to get to people’s money. Oftentimes, the con artist relies on credibility gained from joining a trusted community organization, such as a church or synagogue.
For Gould, his relationships in University City’s Orthodox Jewish community were key, enabling him to steal more than $5 million.
In addition to compensating investors, Cincinnati Analysts will pay $110,000 in fines.
For more information regarding investments and fraud protection, or for information regarding a company or representative, visit www.MissouriSafeSavings.com or call the Investor Protection Hotline at 1-800-721-7996.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.