According to the forensic accountant Kaminsky spent $5.8 million gambling at the casino over a seven-year period. However, the good news for her was that she was able to get back $5.1 million of that in winnings, which meant she actually only lost $665,000 or about $25,000 more than she stole from her clients.
Apparently without a gambling addiction, Kaminsky obviously had some compulsion for risk that pushed her to undertake such a fraud after 10 years selling mutual funds.
While WP is by no means an expert on the typical payouts by casinos, it seems logical that the results achieved by the former advisor are exactly what casinos want when they open their doors. You to win a little in order to lose a little more than that and so on until it adds up to a huge amount of losses out of pocket.
This case is regrettable in so many ways.
First, and most serious, are the number of unsophisticated investors taken advantage of by this person they trusted with their hard-earned savings. Advisors are held to a higher standard; Kaminsky betrayed this completely.
Also very serious but not directly related to financial advice is the utter futility of gambling. It’s a losing proposition for everyone – except the casino.