Former Mutual of Omaha Investor Services, Inc. broker Edward Matthes (CRD# 2788055), who was barred by FINRA regarding unsuitable variety annuity investment recommendations, recently pled guilty to wire fraud.
Matthes was registered with Mutual of Omaha Investor Services, Inc. in Oconomowoc, Wisconsin from 2012 to March 2019, when he was terminated regarding, “The representative was discharged for creating fictitious account statements and diverting customer funds for his own personal use.” Previously, Matthes was registered with Thrivent Investment Management Inc. in Oconomowoc, Wisconsin from 2006 to 2012 and with MML Investors Services, Inc. in Chesterfield, Missouri from March to May 2006, when he was terminated regarding, “State of Missouri has alleged that representative made an unsuitable sale of a variable annuity to a Missouri resident; they also alleged misrepresentation of the variable annuity to the same Missouri resident. The transaction in question occurred at the representative’s prior broker/dealer affiliation.”
In November 2020, Matthes pled guilty to wire fraud.
In February 2020, Matthes was barred by the Securities and Exchange Commission (SEC) from acting as a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO regarding his participation in a penny stock.
In February 2020, The SEC alleged that Matthes “defrauded 26 customers out of approximately $2.4 million. According to the SEC’s complaint, the representative 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. “
In May 2019, the state of Wisconsin barred Matthes regarding allegations that he “Respondent misappropriated over $1 million from his insurance clients, created fictitious investments and fictitious account summary forms.”
In March 2019, the Federal Bureau of Investigation (FBI) opened an investigation into Matthes regarding alleged misappropriation of funds.
That same month, FINRA barred Matthes after he consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA in connection to an investigation that FINRA initiated based on an external tip.
These recent complaints are not the first for Matthes. In March 2006, the State of Missouri, Office of Secretary of State, Securities Division, ”alleged unsuitable sale of a variable annuity to a Missouri resident; alleged investment of 85-90% of liquid net assets into a variable annuity to the same Missouri resident.”
Matthes has been the subject of 15 customer complaints between 2005 and 2019, one of which was denied, according to his CRD report. Recent complaints are regarding:
- April 2019. “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.” The customer sought $86,228 in damages and the case was settled for $87,584.95.
- April 2019. “Client through personal representative alleged that the representative misappropriated funds by diverting client’s assets for the representative’s personal use.” The customer sought $5,000 in damages and the case was settled for $190,923.34.
- April 2019. “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.” The customer sought $232,937.72 in damages and the case was settled for $314,823.87.
- March 2019. “The client alleged that funds he intended to place with Mutual of Omaha were not invested. The client provided documentation including copies checks written directly to the representative that were deposited into the representative’s personal bank account.” The customer sought $100,000 in damages and the case was settled for $93,333.53.
- March 2019. “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 account and a fictitious account statement.” The customer sought $11,000 in damages and the case was settled for $11,957.84.
- March 2019. “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.” The customer sought $174,057.91 in damages and the case was settled for $182,483.10.
- March 2019. “The clients alleged that the representative misappropriated funds by diverting their 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.” The customer sought $354,154.83 in damages and the case was settled for $392,360.82.
- March 2019. “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.” The customer sought $37,000 in damages and the case was settled for $40,354.02.
- March 2019. “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.” The customer sought $170,587 in damages and the case was settled for $188,347.92.
- March 2019. “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.” The customer sought $45,590.94 in damages and the case was settled for $50,534.18.
- March 2019. “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 copies of fictitious account statements.” The customer sought $512,950.53 in damages and the case was settled for $569,549.16.
- March 2019. “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.” The customer sought $55,000 in damages and the case was settled for $59,026.16.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Mutual Of Omaha Investor Services, Inc. may be liable for investment or other losses suffered by Matthes’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
"*" indicates required fields
