John Matson Facing SEC Complaint, Investor Dispute

SEC brought a complaint against John Nicholas Matson [CRD: 1796541, Manhattan Beach, California], and LPL Financial LLC investors complained about him, according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Matson worked for LPL Financial LLC from November 2, 2017, to December 7, 2022, and for Ameriprise Financial Services Inc. from June 22, 2015, to November 9, 2017. Here’s more about Matson’s disclosures.

SEC Charged Matson With Misappropriation Of Client Assets

Notably, on July 30, 2024, United States Securities and Exchange Commission (SEC) initiated Case 3:24-cv-01342 against John Matson. The SEC alleged that Matson operated a Ponzi scheme and misappropriated client assets.

The enforcement action centers on allegations that Matson and a company known as South Bay Acquisitions LLC (South Bay), engaged in unauthorized activities. According to the SEC's complaint, between 2012 and 2021, Matson sold LLC Bonds to five investors, raising an estimated $1,535,000. These securities, which SEC described as promissory notes, supposedly promised investors returns of 12 to 20%.

Matson allegedly transferred the investors’ funds from South Bay to his own account without telling investors. Therefore, SEC claims that through unauthorized transfers, Matson diverted approximately $1,566,250 by July 2023. The Complaint alleged that he used these funds for personal expenses and to pay promised returns to earlier investors, a hallmark of a Ponzi scheme.

This matter is ongoing.

LPL Financial LLC Investor Accused John Matson Of Promissory Note Losses

Particularly, a client filed a complaint about John Matson. The client alleged that Matson sold her a promissory note in the amount of $300,000 in February of 2019, away from the firm. Because of this, the investor supposedly sustained damages. Therefore, on October 25, 2023, LPL Financial LLC settled this matter by paying the client $180,000 in damages.

John Matson Disclosed Allegations By LPL Financial LLC Client

Also, a client of LPL Financial LLC contested John Matson’s sales practices, according to a complaint. Notably, the investor alleged sales of two promissory notes away from the firm. Allegedly,  Matson caused the client to sustain damages. Consequently, LPL Financial LLC opted to settle the matter on January 10, 2024, by compensating the client in the amount of $180,000.

FINRA Expels Matson Following Investigation Into Promissory Note Recommendations

On December 19, 2022, FINRA sanctioned John Matson for infractions. Specifically, Matson was barred permanently as a securities broker for any FINRA member firms. FINRA alleged that Matson refused to provide documents and information requested by the regulator during its investigation into an investor's investments in promissory notes that were allegedly recommended by Matson. The investigation originated from a call made by an 80-year-old investor to the FINRA Securities Helpline for Seniors. The investor claimed that Matson had recommended investing in a promissory note and subsequently failed to make the promised interest payments on the note. Supposedly, Matson violated FINRA Rule 8210 by not complying with FINRA”s investigation into these allegations..

Did You Sustain Losses Because Of Securities Broker John Matson?

Did you suffer financially because of John Matson? If so, contact Soreide Law Group online or at (888) 760-6552 and speak to a securities lawyer about a potential recovery of your investment losses. Soreide Law Group investment loss attorneys assist individuals throughout the United States, work on a contingency fee basis, and advance all costs. Matson and the brokerage firms he worked for deny accusations of sales practice violations.