Tucson man pleads guilty to fraud charges

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A 43-year old Tucson man has pleaded guilty to charges of securities fraud and filing a false income tax return. David Holst faces up to 28 years in prison, fines of $1,250,000, or both, when he is sentenced on February 12.

Investigators say Holst started a financial advisory company in May of 2007, but took clients' money intended for investment in mutual funds and used it instead to gamble at a casino. As a result, clients were defrauded of approximately $350,000. In addition, Holst also failed to report the illegal income on his income tax returns.