Matthew Clason, Formerly of LPL Financial, Pleads Guilty to Wire Fraud

Clason was previously accused of stealing over $600k from a retired client.

Matthew Clason (CRD: 4692266) was registered as a broker with LPL Financial from 2016 until 2020. Clason was discharged from LPL in August 2020 following allegations that Clason maintained a joint bank account with a customer of LPL, engaged in liquidations of securities in the customer’s firm account, transferred the funds to the joint account, and withdrew the funds.

Clason has five other disclosures on his BrokerCheck report.

November 2020 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges Mr. Clason converted monies from Claimant at some point during the 2015-2020 time period.
• Damage Amount Requested: $2,500,000.00
• Settlement Amount: $1,000,000.00

October 2020 Customer Dispute

• Status: Settled
• Allegations: Customers allege that the registered representative misrepresented overall investment strategy and recommended investments which were unsuitable. Time period of claim: June 2018 – March 1, 2021
• Damage Amount Requested: $5,000.00
• Settlement Amount: $12,965.00

September 2020 Regulatory Judgment

• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Clason consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into the allegations that formed the basis of his termination reported on a Uniform Termination Notice for Securities Industry Registration (Form U5) submitted by his member firm. The findings stated that the firm filed the Form U5 terminating Clason’s registration 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.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All capacities
• Duration: Indefinite
• Start Date: 9/17/2020

September 2020 Civil Judgment

• Status: Pending
• Initiated By: United States Securities and Exchange Commission
• Allegations: The Securities and Exchange Commission (the “Commission”), for its Complaint against Clason, alleges that this case concerns theft of assets from a retired retail investor by an investment professional. From at least December 2018 to present, investment adviser Matthew O. Clason (“Clason”) stole hundreds of thousands of dollars from a client of the investment adviser and broker dealer firms with which he was associated. Clason had cultivated a personal relationship with this client and, during this period, sold securities managed on the client’s behalf to fund transfers to a joint bank account held in the names of the client and Clason. Clason then made numerous cash withdrawals from that joint bank account at multiple bank branches. Clason’s securities sales, transfer of the proceeds to the joint bank account, and numerous, large cash withdrawals from the joint account were neither known to nor approved by the client. Clason thus exploited a personal relationship with and breached his fiduciary duty to the client to perpetrate his fraud and misappropriate hundreds of thousands of dollars. Through this conduct, Clason has violated and, unless enjoined, will continue to violate Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (the “Advisers Act”). Based on these violations, the Commission seeks: (1) entry of a temporary restraining order, preliminary injunction, order freezing assets, expedited discovery, an accounting, and order for other equitable relief in the form submitted with the Commission’s motion for such relief; (2) entry of a permanent injunction prohibiting Clason from further violations of the relevant provisions of the federal securities laws; (3) disgorgement of the money he misappropriated, plus pre-judgment interest; and (4) imposition of civil monetary penalties based on the egregious nature of Clason’s violations.

August 2020 Employment Separation After Allegations

• Firm Name: Integrated Wealth Concepts
• Termination Type: Discharged
• Allegations: Investigating the scope and extent of the representative’s activities as set forth in the Termination Explanation.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Matthew Clason. 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.