Fired rep admits stealing $600,000 from elderly client

Fired rep admits stealing $600,000 from elderly client
The broker, Matthew Clason, transferred more than $668,000 from the victim’s investment accounts into a joint bank account and then took most of it, according to the Department of Justice. He faces up to 20 years in prison.
MAY 13, 2021

A former LPL Financial and Lincoln Financial Advisors Corp. broker on Wednesday pleaded guilty to one count of wire fraud in federal court in Hartford, Conn., stemming from his theft of $600,000 from a senior citizen client.

The broker, Matthew O. Clason, 39, was registered with Lincoln Financial Advisors until 2016, when he moved his registration to LPL. According to the Department of Justice, starting in 2015, Clason provided investment services to a 73-year-old Connecticut resident. The client had at least five investments accounts with Clason and, in January 2018, Clason and the victim opened a joint bank account.  

From 2018 to August 2020, Clason transferred more than $668,000 from the victim’s investment accounts into the joint bank account and, without the victim’s knowledge or authorization, withdrew more than $621,000 in cash from the bank account for his personal use, according to the Department of Justice.

LPL Financial "discharged," meaning fired, Clason last August as the same charges surfaced, according to his BrokerCheck profile. Clason was also fired from a registered investment adviser, Integrated Wealth Concepts, around that time.

A customer complaint for $1 million and involving Clason was settled last November, according to BrokerCheck, while another for close to $13,000 was settled this March.

Clason is scheduled to be sentenced in August and faces up to 20 years in prison.

"This is the first step in resolving the issues Mr. Clason is facing," said his attorney, Frank J. Riccio, in an interview Thursday.

Spokespersons for LPL Financial and Lincoln Financial Advisors did not comment by deadline.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.