Ex-LPL Broker Matthew Clason Reportedly Pleads Guilty to Theft Charges
Update on Investigation, May 14, 2021
The White Law Group is continuing its investigation into former LPL financial advisor Matthew Clason (CRD #4692266) and the liability his employers may have for failure to supervise him.
Former LPL Broker Matthew Clason pleaded guilty this week to one count of wire fraud before U.S. District Court Judge Michael Shea in Hartford, Conn., according to New Haven BIZ. Clason now faces up to 20 years in prison for allegedly stealing over $300,000 from a 73-year-old retired woman. His sentencing is scheduled for August 5, according to the article. The former broker must also pay restitution in an amount yet to be determined, with prosecutors claiming it should be $639,380 and Clason arguing the client’s losses were smaller, according to the article.
Clason reportedly worked as the woman’s investment advisor beginning in 2015, and allegedly convinced her to share a joint checking account in 2018, purportedly for investment purposes, according to the article.
Clason allegedly liquidated securities in his client’s accounts, transferring the proceeds from the sales to a bank account held jointly with the client for investment purposes. Clason purportedly withdrew cash from the account on numerous occasions and at different bank locations. The complaint further alleges that the client did not know of or approve the withdrawals and did not receive the cash that Clason withdrew.
On September 17, 2020, the Financial Industry Regulatory Authority (FINRA) reportedly barred Clason from the securities industry after he refused to provide information in the regulator’s investigation into allegations that he converted customer funds. FINRA’s findings stated Clason’s employer terminated him “because he 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.”
FINRA’s bar came after the Securities and Exchange Commission reportedly filed an emergency action charging Clason with allegedly stealing thousands of dollars from an advisory client. The SEC was seeking an asset freeze and other relief.
According to his FINRA BrokerCheck report, Clason was registered with LPL Financial in Glastonbury, CT from 2016 until September 2020. He was also an investment adviser with Integrated Wealth Concepts, also of Glastonbury. He has reportedly been affiliated with four firms since he began his career in the securities industry in 2004. Clason reportedly has 2 customer complaints filed against him, according to his broker report.
Potential Lawsuits to Recover Financial Losses
When brokers abuse client accounts or conduct transactions that violate securities laws, such as selling away or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
Did you invest with Matthew Clason? If so, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
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.
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