Can you recover losses due to recommendations by LPL Financial LLC broker John Matson (CRD# 1796541)? He has been registered with LPL Financial LLC in Manhattan Beach, California, from 2017 to 2022, Ameriprise Financial Services, Inc. in Los Angeles, California, from 2015 to 2017, and LPL Financial LLC in Manhattan Beach, California, from 2007 to 2015.
In December 2022, FINRA barred him after he “refused to provide documents and information requested by FINRA in connection with its investigation into a customer’s investments in promissory notes recommended by Matson. The findings stated that this matter originated from an 80-year-old customer’s call to the FINRA Securities Helpline for Seniors in which the customer advised that Matson had recommended the customer invest in a promissory note and had thereafter ceased making promised interest payments on the note.”
In July 2024 the United States Securities and Exchange Commission (SEC) opened a civil investigation alleging John Matson and his company, South Bay Acquisitions, LLC engaged in a Ponzi scheme and misappropriation of client assets, between January 2012 and September 2021. The complaint alleges that he “sold securities with a face value of $1,560,000 issued by South Bay to five investors, raising approximately $1,535,000. The securities, which were denoted ‘LLC Bonds’ and were functionally promissory notes, included language stating that the Defendants would manage the proceeds as fiduciaries and promising 12 to 20% interest. Despite his obligation to act as a fiduciary, and without disclosure to investors, Matson immediately and consistently transferred money from South Bay or otherwise diverted South Bay funds (including some South Bay funds earned from another source) to his personal account, in transactions totaling approximately $1,566,250 through July 2023, where it was used for personal expenses. He also used investor funds to pay promised returns to earlier investors.”
John Matson Customer Complaints
He has been the subject of four customer complaints between 2010 and 2023, one of which was denied, according to his CRD report. The most recent complaints were regarding:
July 2023. “Customer alleges that representative sold her a promissory note in the amount of $300,000 in February of 2019, away from the firm.” The customer sought $300,000 in damages, and the case was settled for $180,000. The complaint was regarding promissory note losses.
January 2023. “1/5/12 – 1/26/23.” The customer sought $610,000 in damages, and the case was settled for $180,000. The complaint was regarding promissory note losses.
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, LPL Financial LLC may be liable for investment or other losses suffered by John Matson’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.
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