Harvin C. Moore III made a very persuasive case. The gentle-spoken Texan recounted the path he took from running a large development company and a savings and loan operation to serving time in a federal prison.

In the end, the reason for his downfall was simple, really. He made a mistake in judgment.

Now, many of us make mistakes in judgment. Hopefully, they’re little ones — like thinking the new puppy didn’t really mean it when she asked to go outside. And the messes we clean up are small ones.

But in Moore’s case, he allowed himself to think that what he was doing was OK in the circumstances — that the circumstances led him into a grey area in which right and wrong blended, that he may be doing the wrong thing but for the right reason.

But when Moore spoke to the Institute of Advanced Financial Planners’ 2008 symposium in Regina at the end of September, he made it clear that there is no grey area when it comes to ethics. Right is right; wrong is always wrong.

Moore’s troubles date back to the 1980s, when the real estate development market died in Texas. And it stayed dead. That jeopardized Moore’s development company and its ability to repay its loans. But Moore was also co-owner of an S&L. Essentially, the S&L made loans that carried conditions, that some of the money came back to Moore’s development company so he could pay off its loans and stave off bankruptcy.

It was illegal — and unethical. Moore was found out and convicted of bank fraud. He did two years. He also lost his wife, his businesses and his ability to practise law.

A sad story — but I didn’t feel sorry for Moore. He wasn’t there asking for anyone’s pity. He was there to remind people of how easy it is to get off track, that the path to wrongdoing is a slippery slope and you can convince yourself step by step that your conduct is OK in the circumstances.

He referred to humans’ unerring ability to justify wrongdoing. Everyone is doing it. (Unfortunately, in the S&L scandal, everyone was.) Or the ability to convince yourself that a particular course of action or decision is best because you will save other people from being hurt. It isn’t about you; it’s about them.

Moore also talked about the “little” laws we break every day and our ability to negotiate our way around the ethical questions. It’s OK, for example, to speed on the freeway. You’re breaking the law, but everybody does it.

(I admit I speed — but it’s better for traffic flow if I keep up with the other speeders; it’s the slow drivers who are dangerous. I don’t, however, talk on my cellphone while driving, as do so many idiots when they’re on the road. Now, that is dangerous!

How is that for self-justification?)

So, much of what Moore said struck a chord, and it certainly has application for advisors. If you can pick and choose the laws you obey, what’s to stop you from selling a product your client may not need because you need to generate some commissions. Your need is greater. And, really, it is a good product. It’s not like you’re putting the client into some dog. And it’s just this once.

Or how about that product with the very attractive commission structure (think: Portus). That would really diversify your client’s portfolio. You’re really doing it for your client.

It is a slippery slope. But don’t kid yourself. As Moore made very clear, there is no grey zone when it comes to right and wrong. Handling other people’s money is a grave responsibility. There is no room for unethical behaviour; only for clear heads.

— TESSA WILMOTT, EDITOR-IN-CHIEF