Broker Ed Matthes Reportedly Pleads Guilty To Wire Fraud
The investment loss recovery team at Soreide Law Group brings you this Investor Alert in regard to barred securities broker Edward “Ed” Earl Matthes (CRD#: 2788055, Oconomowoc, Wisconsin). Evidently, Matthes worked for securities firms including Thrivent Investment Management and Mutual of Omaha Investor Services. Notably, Matthes recently pleaded guilty to wire fraud. He has also been barred as a broker by SEC, FINRA and the State of Wisconsin. Further, 15 or more clients brought disputes about Matthes’s sales practices.
Department of Justice Brings Criminal Charges Against Ed Matthes
Evidently, in November 2020, the United States Attorney’s Office brought a three-count information charging Ed Matthes with wire fraud. Notably, the broker pleaded guilty to the charges. The written plea agreement indicates that the broker worked for Mutual of Omaha when he engineered a scheme to defraud clients. Reportedly, his clients believed that he would place their money into accounts that would allow for better investment returns. But Matthes did not actually open those accounts. He purportedly placed investors’ money into his bank account. After that, the broker purportedly sent fake statements to investors to keep them thinking that he invested their money.
The plea agreement indicates that Ed Matthes obtained – through fraudulent means – more than $2,600,000 from no less than 23 of his clients. Notably, DOJ indicated that Matthes agreed to debarment for 13 years which means that he is not allowed to have any involvement in any employee benefit plan.
Matthes Barred As Broker By Regulators Including FINRA, SEC, State of Wisconsin
In February 2020, SEC barred Ed Matthes as a securities broker, financial advisor and in other capacities. The Order comes on the heels of SEC charging him with violating federal securities laws in connection with his scheme. SEC indicated that Matthes made unauthorized withdrawals from clients’ annuities as part of his scheme. Not only that, but he purportedly paid clients in Ponzi-like payments as part of concealing the fraudulent scheme.
Moreover, in May 2019, Wisconsin barred Ed Matthes for misappropriating money from clients. And in March 2019, FINRA barred Matthes for failing to submit to its investigation requests. Namely, FINRA wanted Matthes to provide documents and information possibly pertaining to the alleged fraudulent scheme. Evidently, Matthes violated FINRA rules by not giving FINRA what it asked for. For this reason, Matthes cannot be a broker with any FINRA-member firms.
Mutual Of Omaha Client Indicates That Ed Matthes Misappropriated Funds
Notably, a client of Mutual of Omaha took aim at Ed Matthes via an April 2019 complaint. Allegedly, the broker misappropriated the client’s funds. It seems that the broker diverted the client’s assets. For this reason, Mutual of Omaha paid the client $190,923.34 to settle the matter in August 2019.
Misappropriation Alleged In Other Complaints About Ed Matthes
Evidently, a number of other Mutual of Omaha investors brought disputes over Ed Matthes. The allegations mostly relate to the same thing – Matthes’s supposed misappropriation of investors’ funds. For instance, a client who brought a dispute in March 2019 indicated that Matthes moved their assets into his bank account. Also, that client alleged that the broker used fictitious account statements. Because of this, Mutual of Omaha paid $50,534.18 to the client to settle the matter.
Losses From Investing Through Matthes At Mutual Of Omaha?
BrokerCheck indicates that Ed Matthes denies all allegations of misconduct as alleged by his clients. Have you experienced losses by investing with him? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Matthes.