Fred, a successful stockbroker, gives a lecture about investing. Some of the persons who attend the lecture form Gain & Profit, an investment club, and ask Fred to advise them. Gain & Profit allows Fred to set up an account for the club with a brokerage firm and gives Fred control of the account, but does not authorize Fred to withdraw funds for his own benefit. Fred uses the money in the Gain & Profit account to repay personal loans. Charged with embezzlement, Fred defends his actions on the ground that he intended to repay the club. (20 pts)

• Issue: Is Fred guilty of embezzlement? Why or why not? Define, explain and decide.