some of hal katz's friends see him differently. >> i didn't dislike him, but i came to think he was not a good businessman. >> michael cohen may know katz better than most. for years, he was the attorney to the insurance agency. he invested more than a million dollars of his money in the financial arm of katz's business. >> obviously, when you enter an arrangement like this, you have to have trust. i'm disappointed the trust wasn't warranted. >> it's a discovery he made last fall. as abc2 news investigators first told you last november. katz's license was revoked to sell insurance as he committed fraudulent practices. $2million are missing from insurance payment plan. the lending arm of his company with more man a dozen creditors including michael cohen left on the hook. >> everybody as far as i know had some personal relationship with hall katz and so essentially, it's not only just a question of misappropriation of money, but it's a betrayal of trust. >> and it may be a costly mistake in judgment for friends and family. some of whom cohen says lost their college funds, their retiremen