Apparently securities brokers are not allowed to use stolen client money for luxury cars, prostitutes and gambling debts

The Securities and Exchange Commission filed suit on Thursday against UBS Financial Services, Inc., broker Steven T. Kobayashi for siphoning customer money in order to finance his luxury cars, prostitutes and gambling debts.  Kobayashi allegedly misappropriated $3.3 million of client funds in addition to misappropriating additional credit funds.  One of his clients complained to UBS in September of 2009 that Kobayashi never repaid personal loans from the client and forged wire transfer documents.  Kobayashi resigned the next morning.  Among other things, the suit filed in U.S. District Court for the Northern District of California seeks the disgorgement of stolen funds plus pre-judgment interest.  Kobayashi holds Series 7, 63 and 65 licenses.