Matthew Christopher Maczko, of Oak Brook, Illinois, a stockbroker formerly registered with Wells Fargo Advisors, LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he charged customers with excessive fees, and misled FINRA during his recorded testimony regarding the allegations of misconduct. Letter of Acceptance, Waiver and Consent, No. 2016050430201 (Feb. 9, 2017).
According to the AWC, from January of 2009 to April of 2006, transactions had been excessively effected by Maczko in the account of an elderly customer, JZ. Apparently, JZ’s accounts, which consisted of approximately $3,000,000.00 in assets, were controlled by Maczko. Evidently, more than two thousand and eight hundred transactions had been effected by Maczko from January of 2009 to April of 2006, which enabled Maczko to accumulate fees which totaled $84,270.00 and commissions amounting to $581,650.00. Yet, the customer reportedly sustained trading losses estimated at $397,000.00. FINRA found that Maczko’s trading was not suitable for JZ based upon JZ’s need for income, tolerance for risk, and age. Therefore, FINRA found Maczko’s conduct to be violative of FINRA Rules 2010 and 2111, as well as NASD Rule 2310.
The AWC revealed that on September 28, 2016, Maczko provided recorded testimony before FINRA personnel, based on Rule 8210, where he made misleading statements concerning his communications with firm senior customers CL and KL. Apparently, Maczko indicated to FINRA that he had not communicated with the customers after termination by Wells Fargo Advisors. FINRA apparently found Maczko’s testimony to be untrue as Maczko communicated with the customers on a number of occasions following his termination from employment. FINRA found that Maczko’s conduct was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Maczko has been named in five customer initiated investment related disputes containing allegations of his misconduct while employed with UBS Financial Services Inc. and Wells Fargo Advisors, LLC. Particularly, on November 1, 1995, a customer initiated investment related arbitration claim involving Maczko’s conduct was settled for $35,000.00 in damages based upon allegations that Maczko effected transactions in the customer’s account which were neither suitable nor authorized, and made misrepresentations to the customer concerning equities. The customer additionally alleged that Painewebber Incorporated failed to supervise Maczko’s conduct.
On April 4, 2003, a customer filed an investment related complaint regarding Maczko’s activities, based upon allegations that Maczko made unsuitable mutual fund investment recommendations to the customer. On May 5, 2006, another a customer filed an investment related complaint involving Maczko’s conduct, in which the customer requested $39,378.00 in damages based upon allegations that Maczko made investment based misrepresentations and committed fraud.
Further, on November 14, 2016, a customer initiated investment related complaint involving Maczko’s conduct was settled for $1,000,000.00 in damages based upon allegations that Maczko effected unauthorized trades in the customer’s account, and omitted information concerning commissions charged to the customer in connection with equity transactions. On February 6, 2017, a customer initiated investment related arbitration claim involving Maczko’s conduct was settled for $375,000.00 in damages based upon allegations that Maczko effected unsuitable transactions in the customer’s account and made investment based misrepresentations to the customer.
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