Edward Earl Matthes, Formerly of Mutual of Omaha Investor Services, Sentenced to Over 5 Years in Federal Prison

Matthes was previously charged by the SEC with defrauding clients.

Edward “Ed” Matthes (CRD: 2788055) was registered as a broker with Mutual of Omaha Investor Services from 2012 until 2019. Previously, Matthes was registered with Thrivent Investment Management from 2006 until 2012.

Last year, the SEC entered an order alleging that Matthes had defrauded 26 customers out of approximately $2.4 million. The SEC’s complaint said that Matthes convinced his customers to invest in what he described as a safe investment that would earn a guaranteed minimum yield of 4% per year. As alleged in the complaint, the purported investment did not exist and the representative stole approximately $1.4 million for his personal use.

The representative allegedly stole an additional $1 million by making unauthorized sales and withdrawals from his customers’ variable annuities. To cover up his fraud, the representative allegedly created fake account statements and paid approximately $170,000 in Ponzi-like payments to customers.

The SEC charged the representative with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Matthes was permanently barred from registering with the SEC. 

In November 2020, Matthes pleaded guilty to wire fraud in a parallel criminal action. In early June 2021, Matthes was sentenced to 63 months in federal prison and ordered to pay $2.4 million in restitution to his victims.

Matthes was permanently barred from registering with the state of Wisconsin in 2019 following allegations that he misappropriated over $1 million from his insurance clients by creating fictitious investments and fictitious account summary forms. 

Matthes has been named in twelve customer disputes since 2019, according to his BrokerCheck report.

April 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that the representative misappropriated funds by diverting assets into his own bank account. The client provided documentation including a copy of a check deposited into the representative’s bank account and a fictitious account statement.
• Damage Amount Requested: $86,228.00
• Settlement Amount: $87,584.95

April 2019 Customer Dispute

• Status: Settled
• Allegations: Client through personal representative alleged that the representative misappropriated funds by diverting client’s assets for the representative’s personal use.
• Damage Amount Requested: $5,000.00
• Settlement Amount: $190,923.34

April 2019 Customer Dispute

• Status: Settled
• Allegations: The clients allege that due to the representative’s actions, their only source of income is from social security and they do not have funds for any costly expenses. The clients provided documentation that the representative created fictitious account statements and diverted funds into his own bank account.
• Damage Amount Requested: $232,937.72
• Settlement Amount: $314,823.87

March 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that funds he intended to place with Mutual of Omaha were not invested. The client provided documentation including copies [of] checks written directly to the representative that were deposited into the representative’s personal bank account.
• Damage Amount Requested: $100,000.00
• Settlement Amount: $93,333.53

March 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that the representative misappropriated funds by diverting assets into his own bank account. The client provided documentation including a copy of a check deposited in the representative’s account and a fictitious account statement.
• Damage Amount Requested: $11,000.00
• Settlement Amount: $11,957.84

March 2019 Customer Dispute

• Status: Settled
• Allegations: The clients alleged that the representative misappropriated funds by diverting assets into his own bank account. The clients provided documentation including copies of checks deposited into the representative’s bank account and fictitious account statements.
• Damage Amount Requested: $174,057.91
• Settlement Amount: $182,483.10

March 2019 Customer Dispute

• Status: Settled
• Allegations: The clients alleged that the representative misappropriated funds by diverting assets into his own bank account. The clients provided documentation including copies of checks deposited into the representative’s bank account and a copy of a fictitious 1099 Form provided by the representative.
• Damage Amount Requested: $354,154.83
• Settlement Amount: $392,360.82

March 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that the representative deposited a check intended for an IRA rollover into his own bank account for the representative’s own personal use. The client provided a copy of the check deposited into the representative’s bank account.
• Damage Amount Requested: $37,000.00
• Settlement Amount: $40,354.02

March 2019 Customer Dispute

• Status: Settled
• Allegations: The clients alleged that the representative misappropriated funds by diverting assets into his own bank account. The clients provided documentation including copies of checks deposited into the representative’s bank account and fictitious account statements.
• Damage Amount Requested: $170,587.99
• Settlement Amount: $188,347.92

March 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that the representative misappropriated funds by diverting customer assets into his own bank account. The client provided documentation including copies of checks deposited into the representative’s bank account and fictitious account statements.
• Damage Amount Requested: $45,590.94
• Settlement Amount: $50,534.18

March 2019 Customer Dispute

• Status: Settled
• Allegations: The clients alleged that the representative misappropriated funds by diverting assets into his own bank account. The clients provided documentation including copies of checks deposited into the representative’s bank account and fictitious account statements.
• Damage Amount Requested: $512,950.53
• Settlement Amount: $562,549.16

March 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged that the representative misappropriated funds by diverting assets into his own bank account. The client provided documentation including copies of checks deposited into the representative’s bank account and a fictitious account statement.
• Damage Amount Requested: $55,000.00
• Settlement Amount: $59,026.16

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Edward Earl Matthes. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.