The Securities and Exchange Commission today charged a former UBS advisor with stealing about $3.3 million from investors-some of which he used to pay for luxury cars, prostitutes and gambling debts.

Steven T. Kobayashi, a former financial advisor at a UBS Financial Services office in Walnut Creek, Calif., stole the money from a private fund of life settlement policies under his management and from investors between 2006 and 2009, according to the SEC.

Kobayashi raised several million dollars from his UBS customers to start Life Settlement Partners LLP, a private fund that invested in life settlement policies, according to the SEC complaint filed in U.S. District Court in Oakland. The SEC claims Kobayashi funneled about $1.4 million dollars of investor funds into his personal account.

Kobayashi tried to conceal his fraud and repay Life Settlement Partners and its investors by inducing several of his other UBS customers to liquidate their securities and transfer the proceeds to entities that he controlled-stealing an additional $1.9 million from investors in the process, according to the complaint.

The SEC alleges that Kobayashi obtained millions more by using a $3 million line of credit he obtained on his investors' behalf.

Kobayashi agreed to settle the charges against him without admitting or denying the allegations, according to the SEC. He also agreed to a permanent injunction from further violations and consented to be permanently barred from associating with entities in the securities industry. The court will determine the amount of penalties Kobayashi will be forced to pay at a later date.