The Securities and Exchange Commission (SEC) has charged former broker Ed Matthes (CRD# 2788055) with defrauding elderly investors out of $2.4 million. The SEC’s complaint, filed on January 28, 2020, alleges that, while a registered representative with Mutual of Omaha Investor Services, Inc. (CRD#: 611), Ed Matthes enticed elderly investors to transfer $1.4 million to him.
Ed Matthes allegedly told the investors that he would invest the money and it would generate at least a 4% return. In reality, the SEC alleges, he did not invest the money; instead, he allegedly used it for his personal enrichment, spending it on home renovation expenses, car payments, and luxuries. To cover up his conduct, he allegedly drafted fake account statements. He is also accused of stealing an additional $1 million from customers. How did he allegedly do it? He allegedly made unauthorized withdrawals from variable annuity contracts that customers held with him. To keep up the alleged scam, he is accused of making $170,000 in Ponzi-like payments.
On March 22, 2019, FINRA, the Financial Industry Regulatory Authority, has previously permanently barred Ed Matthes from the securities industry, according to his BrokerCheck record accessed on January 30, 2020. FINRA sanctioned Ed Matthes in connection to allegations he failed to provide documents and information in connection with an investigation.
Ed Matthes was terminated from Mutual of Omaha Investor Services, Inc. (CRD#: 611) on March 12, 2019 in connection to allegations he created false account statements and diverted client funds for his own use.
On March 15, 2019 he was named in an investigation by the Federal Bureau of Investigation into “alleged misappropriation of funds.” The FBI investigation remains pending.
Since March 2019, according to Ed Matthes’s BrokerCheck, he has been involved in 12 customer complaints, which have settled for a total of over $1.6 million. One complaint is pending. On March 15, 2019, a customer alleged that Ed Matthes misappropriated funds and presented as documentation copies of checks deposited into Ed Matthes’s account, as well as copies of fictitious account statements. The client is seeking $512,950.53 in damages.
Edward Matthes spent 20 years in the securities industry and was most recently registered with Mutual of Omaha Investor Services in Ocomowoc, Wisconsin (2012-2019). Previous registrations include Thrivent Investment Management in Ocomowoc, Wisconsin (2006-2012); MML Investors Services in Chesterfield, Missouri (2006); Thrivent Investment Management in Minneapolis, Minnesota (1999-2006); and AAL Capital Management Corporation in Minneapolis, Minnesota (1996-1997). He passed five securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on April 19, 2002; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on August 16, 1996; SIE (Securities Industry Essentials Examination), which he obtained on October 1, 2018; Series 7 (General Securities Representative Examination), which he obtained on July 26, 2001; and Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on September 19, 1996. He is currently not registered with any state or firm.
If Ed Matthes was your broker and you have concerns about your investments, don’t hesitate to contact a securities attorney to learn more about your options for recovery. Call the securities attorneys of Fitapelli Kurta at (877) 238-4175 or email firstname.lastname@example.org for a free case consultation.