Matthew O. Clason of Glastonbury Connecticut a stockbroker formerly registered with LPL Financial LLC is the subject of a customer initiated investment related FINRA securities arbitration claim which settled for $1,000,000.00 in damages on February 22, 2021 based upon accusations that the customer’s assets had been converted by Clason between 2015 and 2020 while Clason was associated with LPL Financial and Integrated Wealth Concepts LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-03761.
This is not the first time that Clason has been accused of misconduct by a customer of a securities broker dealer. FINRA Public Disclosure also confirms that on March 1, 2021, a customer initiated investment related complaint involving Clason’s conduct was settled for $12,965.00 in damages founded on allegations that between June of 2018 and March of 2021, the investment strategy that had been utilized for the customer’s account had been misrepresented by the stockbroker. According to the complaint, the customer had also been provided unsuitable investment recommendations from Clason. This led them to invest in fixed and variable annuities, a real estate investment trust and an interval fund. Clason allegedly caused the customer’s damages for his activities at Integrated Wealth Concepts, LPL Financial and Lincoln Financial Advisors Corporation.
Clason has also been charged by Securities and Exchange Commission (SEC) with the theft of a customer’s assets between December of 2018 and September of 2020. Securities and Exchange Commission v. Matthew O. Clason Case No. 3:20-cv-01279 (Sept. 1, 2020).
According to the Complaint, hundreds of thousands were stolen by Clason from a customer who he was involved with while registered with his investment advisory and securities broker dealer. The Complaint alleges that the customer’s securities had at one point been managed by Clason but were then sold with proceeds transferred to a bank account that Clason co-owed. The funds had then allegedly been withdrawn by Clason. SEC alleges that Clason’s activities were not made known to the customer. The customer allegedly failed to approve any of these transactions.
SEC alleges that Clason exploited the relationship that he maintained with the customer. The stockbroker is accused of breach of fiduciary duty, misappropriation and fraud. The Complaint alleges that Clason violated Investment Advisers Act of 1940 Sections 206(1) and 206(2).
Clason has also been barred from associating with any FINRA member in any capacity supported by findings that he neglected to provide information and documents to FINRA in an investigation into his activities with the customer who is referenced in SEC’s Complaint. Letter of Acceptance Waiver and Consent No. 2020067686301 (Sept. 17, 2020). According to the AWC, Clason was prompted by FINRA to provide documents and information so that the regulator could assess whether he made unauthorized transactions in the customer’s account. Clason’s legal counsel informed FINRA that Clason would not comply in the investigation. The stockbroker violated FINRA Rules 2010 and 8210.
Clason was discharged by LPL Financial on August 19, 2020 based upon accusations of his co-ownership of a joint account with a customer, liquidation of the customer’s securities portfolio, transfer of assets to the bank, and his withdrawal of the customers funds.