Fallen adviser: Don't let this happen to you

The “Scared Straight” approach has helped scores of at-risk kids avoid life-changing mistakes. At its national conference Wednesday in Orlando, Fla., Raymond James Financial Inc. presented its own version of the program Patrick Kuhse, a former financial planner and regional vice president for a major financial services company who spent time in jail for financial fraud, offered up his story to advisers as a cautionary tale. Mr. Kuhse said his slide first started when a friend won elective office in Oklahoma. That friend asked Mr. Kuhse to manage some bond investments — in return for a kickback on his inflated commission. When the FBI uncovered the fraud, Mr. Kuhse fled with his family to Costa Rica. They lived in the country for several years, but the on-the-lam adviser was eventually captured by Interpol. Mr. Kuhse said he spent a month amid horrible conditions in a Costa Rican prison before being extradited. After time in a U.S. prison, Mr. Kuhse managed to repair his family and started a new career as a speaker. He said critical errors in thinking are the start of every crime, and he urged advisers to be wary of them. At the top of the list: a sense of entitlement and an oversized ego. Mr. Kuhse cautioned advisers about making seemingly unimportant decision that could put them on the wrong path. At the point, he noted, it's very easy for advisers to rationalize illegal behavior – and not take responsibility for their actions. “We live in an instant gratification society,” Mr. Kuhse told advisers. “I was a hamster on the wheel. I always wanted more.” He warned his audience against following his example, and said his goal was to reach the one person who might need his message. His family's suffering was his greatest regret, he said. “Income is never the definition of us,” he said. “All we take with us when we are done are choices and relationships.”