Written by The White Law Group• January 29, 2020• 7:03 pm• Blog, Current Investigations, Securities Fraud Articles

Edward E. Matthes Fraud Charges

SEC Charges Former Advisor Edward E. Matthes with Defrauding Investors

Concerned about investments with Edward E. Matthes?

According to a press announcement yesterday, the Securities and Exchange Commission has charged Wisconsin investments advisor Edward E. Matthes with allegedly defrauding 26 of his “mostly elderly” retail brokerage customers out of approximately $2.4 million.

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Matthes purportedly convinced his Mutual of Omaha brokerage customers and advisory clients to invest in what he described as a safe investment that would earn a guaranteed minimum yield of 4% per year, according to the complaint. The purported investment did not exist, and Matthes allegedly stole approximately $1.4 million for his personal use.

According to the SEC’s complaint, Matthes allegedly stole an additional $1 million by purportedly making unauthorized sales and withdrawals from his customers’ variable annuities. He then allegedly created fake account statements and reportedly paid close to $170,000 in Ponzi-like payments.

He reportedly used the money for personal expenses such as car payments, home renovation and other luxury items, according to the SEC.

Matthes has reportedly agreed to settle the SEC’s charges, with monetary relief to be determined by the court at a later date.

According to his FINRA broker profile, Matthes is currently under investigation by the FBI since March of 2019. He reportedly has 15 customer complaints filed against him, according to his broker report. Mutual of Omaha also reportedly dismissed Matthes after allegations in March for “creating fictitious account statements and diverting customer funds for his own personal use.”

Securities Fraud Investigation

The White Law Group is continuing its investigation of potential securities fraud claims involving Edward E. Matthes and the liability his former employers may have for failure to properly supervise him.

Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Wisconsin. Our attorneys have recovered millions of dollars from many brokerage firms in the past.