Ex-Wisconsin Financial Advisor Bilked 27 Victims of $2.6M, Many of Them Older Investors
Edward Earl Matthes, an ex-Mutual of Omaha Investor Services broker, is sentenced to 63 months behind bars for defrauding over two dozen investors, most of them older customers, in a $2.6M investment scam. He had pleaded guilty to multiple counts of wire fraud.
Matthews was also the subject of a parallel Securities and Exchange Commission (SEC) lawsuit last year that ordered him to pay those he harmed $2.4M in restitution. The regulator permanently barred him from the industry.
Our broker fraud lawyers are looking into losses suffered by former customers of ex-Mutual of Omaha registered representative Edward Matthes to help them determine whether they have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. Call (800) 259-9010 today.
Broker Edward Matthes Touted Scam Investment & Stole Money From Investors
In his scheme to defraud investors, Matthes is accused of convincing customers to invest $1.4M in a nonexistent investment. He allegedly used the funds for his own use including for mortgage payments, home renovations, credit card bills, child support, and other expenses.
He also stole $1M through unauthorized transactions and withdrawals involving clients’ variable annuities. Some $170K in Ponzi-like payments were issued to his victims to hide the fraud.
Meanwhile, the clients thought they stood to make a minimum 4% annual yield from the fake investment. They used money from their retirement funds, investment savings, or personal portfolios. Many of them were senior investors.
In 2019, the Wisconsin Department of Financial Institutions barred Matthes for misappropriating more than $1M from insurance clients. That is the same year that FINRA also barred him after Matthes refused to cooperate in the self-regulatory organization’s probe into his alleged actions. It was just days before that Mutual of Omaha Investor Services fired Matthes for allegedly diverting customer monies and generating fake account statements.
Of the 24 disclosures on Edward Matthes’ BrokerCheck Record, 15 of them are customer disputes. All of the ones in 2019 allege misappropriation and appear to be related to the investment scheme:
- 4/2019: An over $87,500 settlement was reached with this customer.
- 4/2019: In this investor fraud claim seeking $5K in damages, the claimant received a nearly $191K settlement.
- 4/2019: These claimants received an almost $315K settlement. They said that because of Matthes’ actions, they were left with only their Social Security as an income source.
- 3/2019: This customer was paid an over $93K settlement.
- 3/2019: This investor received a nearly $12K settlement.
- 3/2019: An over $182K settlement was reached with these customers.
- 3/2019: This investor fraud case was settled for over $392K.
- 3/2019: After claiming that Matthes took a check meant for an IRA rollover and placed the funds in the broker’s own account, this customer received an over $40K settlement.
- 3/2019: This misappropriation case ended with a more than $188K settlement.
- 3/2019: A $50K settlement was paid to this investor.
- 3/2019: Clients were paid a $569,549 settlement.
- 3/2019: This investor fraud case concluded with a $59K settlement.
In 2006, following unsuitability allegations regarding the sale of a variable annuity to a Missouri customer, broker-dealer MML Investors Services, where Matthes was registered at the time, allowed him to resign. The Securities Division for Missouri’s Office of the Secretary of State fined Matthes over $7K for the VA sale.
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