The Securities and Exchange Commission has barred Edward Matthes, a former representative with Mutual of Omaha Investor Services, for stealing $2.4 million from 26 customers.
The rep, from Pewaukee, Wisc., was fired by his firm in March 2019. That month, the Financial Industry Regulatory Authority Inc. barred Mr. Matthes for his theft and for the fraudulent activities surrounding it. In May 2019, Wisconsin barred him from selling securities and insurance.
According to the SEC’s complaint, Mr. Matthes persuaded his customers to invest in what he described as a safe investment that would earn a guaranteed minimum yield of 4% per year. The complaint alleged that the purported investment did not exist and that Mr. Matthes used the $1.4 million his clients invested with him for his personal use.
He allegedly stole another $1 million by making unauthorized sales and withdrawals from his customers’ variable annuities. To cover the fraud, he allegedly created fake account statements and made about $170,000 in Ponzi-like payments to customers.
FINRA barred the advisor, Sung Moo Cho, last month.
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