Matthew Thomas Cochran of Charlotte North Carolina a stockbroker formerly employed by Northwestern Mutual Investment Services LLC is the subject of a customer initiated investment related arbitration claim in which the customer requested $300,000.00 in damages based upon accusations that from 2015 to 2018: (1) the customer had been provided bad investment recommendations in regard to options products and (2) unsuitable options trades led the customer to experience unwarranted losses. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03633 (Nov. 1, 2018).
FINRA Public Disclosure additionally reveals that Cochran has been barred from associating with any FINRA member in any capacity founded on findings that Cochran impersonated investors to effect transactions and exercised discretion in customers’ outside accounts without having written authorization from Northwestern Mutual Investment Services. Letter of Acceptance Waiver and Consent No. 2017054247001 (Mar. 20, 2018).
According to the AWC, from 2015 to 2017, ninety-eight customers of Northwestern Mutual along with other investors had been steered by Cochran towards creating accounts at a different securities broker dealer than Northwestern Mutual. The customers had been aided by Cochran to create the outside investment accounts which appear to be Ameritrade brokerage accounts. The stockbroker also procured customer login information to effect trades in their accounts using discretion.
The AWC stated that Cochran neglected to inform Northwestern Mutual about his activities; and he lied about not having any trading authority in accounts held by investors at the securities broker dealer or at other firms. The AWC stated that 5,931 trades which were effected by Cochran and another unregistered person had totaled $9,600,000.00 in purchases and sales, generating at least $34,000.00 in compensation for Cochran. FINRA found Cochran’s conduct violative of FINRA Rules 2010 and NASD Rule 3050.
FINRA also stated that Cochran impersonated investors to effect transactions in their outside accounts. He apparently lied to firms by claiming that he was one of the investors. The AWC stated that Cochran repeated this behavior with at least nine other customers. In at least two cases, requests had been made by the stockbroker for customers’ accounts to be liquidated when the firms holding those accounts believed that Cochran was the customer. FINRA found Cochran’s conduct violative of FINRA Rule 2010.
Cochran was terminated by Northwestern Mutual on April 12, 2017 founded on allegations of him admitting to selling away from the firm and concealing his activities from the securities broker dealer in the process.
