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Barred Financial Advisor Edward Matthes Pleads Guilty to Fraud

Barred Financial Advisor Edward Matthes Pleads Guilty to Fraud, featured by top securities fraud attorneys, The White Law Group

Edward Matthes, Mutual of Omaha,  Charged with Stealing $2.6 Million from 23 Investors

The White Law Group continues its investigation into potential securities fraud claims involving Edward Matthes and the liability his employers may have for failure to supervise him.

Former financial advisor Edward Matthes has reportedly pleaded guilty to stealing money from 23 investors while he was with Mutual of Omaha Investor Services, according to news reports today.

Last week, Matthes reportedly entered a plea deal after being charged with three counts of wire fraud related to allegations that he stole $2.6 million from 23 clients from 2013 to 2019, most of whom were elderly, according to the Milwaukee Journal Sentinel. Matthes apparently coerced his clients to transfer money from their existing accounts to one sponsored by Mutual of Omaha. Instead he purportedly put the money in his own bank account and allegedly used the funds to pay personal expenses such as credit cards, mortgage, child support, vacations and more than $80,000 to Tiffany & Co., according to news reports.

The paper wrote that in his plea agreement, Matthes admitted to stealing the money, reportedly claiming he did so under pressure to appear successful while his spending was out of control. Matthes is reportedly selling off assets to put the proceeds toward repaying around $2.4 million in restitution, some of which has been repaid already, according to reports.

Matthes, if convicted, could face up to 20 years in prison, plus a $250,000 fine, for each count of wire fraud.  

According to his BrokerCheck record, the Financial Industry Regulatory Authority (FINRA) reportedly barred Matthes after he failed to provide requested information after allegations in March 2019. He was registered with Mutual of Omaha Investor Services in Oconomowoc, WI from 2012 until 2019 when he was reportedly discharged “for creating fictitious account statements and diverting customer funds for his own personal use.” Matthes reportedly has 15 customer complaints filed against him since 2005.

 In January 2020, the SEC charged Matthes with defrauding 26 clients out of around $2.4 billion between April 2013 and March 2019, and barred him in February 2020. He was also reportedly ordered to pay Mutual of Omaha Insurance and Mutual of Omaha Investor Services $1.785 million, the amount the firm had accused him of stealing.

Investigating Potential Lawsuits  

Mutual of Omaha Investor Services  and all broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

When brokers violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. 

If you suffered investment losses with Edward Matthew and Mutual of Omaha Investor Services, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation. 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. 

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com



Tags: , , , , , , Last modified: November 30, 2020