In September 2020, previously registered investment adviser and broker Matthew O Clason allegedly refused to provide documents and information requested by FINRA during an investigation related to his termination from LPL Financial in August 2020. Matthew Clason was sanctioned by FINRA on September 15, 2020 for violating FINRA Rules according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
On August 27, 2020, FINRA staff sent a request to Matthew O. Clason seeking the production of information and documents in connection to their investigation of allegations reported on a Form U5 submitted by LPL Financial. The findings reported on the Form U5 stated the firm is terminating Clason’s registration because he allegedly maintained a joint bank account with a firm customer, engaged in liquidations of securities in the customer’s firm account, transferred funds to a joint bank account, and withdrew funds, according to his FINRA Brokercheck page.
On September 8, 2020 Matthew Clason allegedly stated during a phone call that he received FINRA’s request and will not produce the information and documents requested, according to the AWC.
Without admitting or denying the findings stated in the Form U5 submitted by his FINRA member firm, Clason consented to the sanction and to the entry findings that he refused to produce documents and information requested by FINRA. Matthew Clason was indefinitely barred from associating with any FINRA member firm in any capacity.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating the alleged broker misconduct of former LPL broker Matthew Clason. Investors who are concerned about their investments with Matthew O Clason are encouraged to contact attorney Alan Rosca for a free case evaluation or to provide useful information. Call 888-998-0530, via email at arosca@rscounsel.law , or through the contact form on this webpage.
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Matthew Clason Is the Subject of Customer Dispute Disclosures
There are two customer dispute disclosures involving former LPL broker Matthew Clason, according to this FINRA Brokercheck page. One customer filed a dispute on November 10, 2020 alleging Clason converted monies from the claimant at some point during the 2015-2020 time period. The customer is seeking $2,500,000 for the alleged damages.
Another customer filed a dispute on October 27, 2020 alleging Clason misrepresented the overall investment strategy and recommended unsuitable investments. The customer is seeking $5,000 for the alleged damages involving annuities, REIT and interval fund investment products.
Matthew O Clason Allegedly Stole Thousands of Dollars from a Client
According to a press release by the SEC, from at least December 2018 to present, Matthew Clason allegedly stole hundreds of thousands of dollars from a client of his associated broker dealer firm. During the timeframe, Clason allegedly established a personal relationship with his client while selling securities on the client’s behalf to fund transfers to a joint bank account held in the names of the client and Clason.
Allegedly, Clason made numerous cash withdrawals from the joint bank account at multiple bank branches without obtaining approval from the client. The client was also allegedly unaware of the bank transfers, and securities sales, the SEC reports.
According to the SEC records, former LPL broker Matthew Clason resides in Cheshire, Connecticut and the client, a 73-year-old retired woman resides in New Britain, Connecticut. Since approximately 2015 or 2016, Clason allegedly provided investment services to the client and managed five investment accounts of the client.
In addition to providing investment advisory services to the client, Clason purported a personal relationship with her by allegedly driving her to various appointments and running errands for her, the SEC reports. Matthew Clason and the client allegedly established a joint bank account in 2018 so Clason would have access to the account for investment purposes and to make cash withdrawals at the client’s request to cover miscellaneous monthly expenses.
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Allegedly, Clason made numerous transfers from the clients advisory account and at least one other account into the joint bank account. To fund these transfers, Matthew O Clason sold securities in the client’s advisory account and transferred the proceeds of those sales to the joint bank account, the SEC reports. There were allegedly 45 transfers out of the client’s advisory account totaling $330,000, funded mostly by the sales of securities in the client’s account.
Clason allegedly made numerous cash withdrawals from the joint bank account totaling at least $300,000. Many of the cash withdrawals were allegedly under $10,000 and were made at different bank branches in order to avoid suspicion from the bank, the SEC reports. The client allegedly did not approve of the large sum cash withdrawals, nor was she aware of the withdrawals.
The SEC reports, as of August 13, 2020, Matthew Clason had possession of approximately $8,200 of the client’s money in his home and he remains a joint signatory with the client on the joint bank account.
Potential Recovery Options for Matthew Clason Investors
The investor rights attorneys at Rosca Scarlato LLC law firm have extensive experience working with investors who have trusted their savings with their investment advisor or broker only to have them unnecessarily misuse their funds. Alan Rosca and his fellow attorneys are currently investigating former LPL broker Matthew Clason’s alleged financial misconduct.
Investors who are concerned about their investments are encouraged to reach out to attorneys at Rosca Scarlato for a free, complimentary consultation where you can share your experience working with former LPL broker Matthew O Clason.
The firm takes most cases of this type on a contingency fee basis and advances the costs associated with representing investors. We only get paid for fees and expenses at the conclusion of the case if we are successful. You can reach attorney Alan Rosca by phone at 888-998-0530, via email at arosca@rscounsel.law, or fill out the contact form on this page.
