LPL Broker John Matson Barred from Securities Industry After SEC Alleges Ponzi Scheme
SEC Alleges Ponzi Scheme Involving John Matson and South Bay Acquisitions, LLC
Updated July 2024 & March 2025
According to a complaint filed by the Securities and Exchange Commission (SEC) in July 2024, John Nicholas Matson, a former LPL Financial advisor, and his company South Bay Acquisitions, LLC allegedly operated a Ponzi scheme misappropriating investor funds. Matson, based in Manhattan Beach, California, was a registered representative and an associated person of a dually registered broker-dealer and investment adviser.
From January 2012 through September 2021, Matson allegedly raised approximately $1.535 million from five investors by selling unregistered securities under the name South Bay Acquisitions LLC Bonds—which were essentially promissory notes promising investors 12–20% interest annually. The securities purported to be managed with fiduciary responsibility.
However, according to the SEC, Matson allegedly diverted more than $1.56 million of investor funds to his personal accounts for personal expenses and to pay returns to earlier investors, a classic hallmark of a Ponzi scheme.
Final Judgment in SEC’s Lawsuit – March 2025
On March 17, 2025, the U.S. District Court for the Southern District of California entered a Final Judgment against Matson and South Bay Acquisitions. The judgment includes:
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Permanent injunctions prohibiting future violations of federal securities laws.
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Disgorgement of ill-gotten gains with prejudgment interest.
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Civil penalties imposed on both Matson and South Bay Acquisitions.
This judgment affirms the SEC’s allegations and permanently bars Matson from participating in the securities industry.
FINRA Bars John Matson from Securities Industry
Separately, in October 2022, the Financial Industry Regulatory Authority (FINRA) reportedly barred Matson after he failed to respond to requests for information during an investigation. The investigation began after an 80-year-old investor contacted FINRA’s Securities Helpline for Seniors reporting that Matson had recommended a promissory note investment and then stopped paying promised interest.
John Matson’s Employment History
According to his FINRA BrokerCheck report, Matson has two customer complaints on file alleging churning, unsuitable investments, and selling promissory notes outside his employer’s supervision.
He was reportedly affiliated with the following brokerage firms:
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LPL Financial LLC, Manhattan Beach, CA – (11/2017 – 12/2022)
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Ameriprise Financial Services, Inc., Los Angeles, CA – (06/2015 – 11/2017)
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LPL Financial LLC, Manhattan Beach, CA – (03/2007 – 07/2015)
Investor Complaints and Settlements
In addition to the SEC case, two customer complaints were filed in 2023, each alleging that Matson sold unapproved promissory notes. Both complaints were reportedly settled for $180,000.
Recovery of Investment Losses through FINRA Arbitration
The White Law Group is currently investigating potential securities claims involving John Matson and the potential liability of his employers, such as LPL Financial, for failure to supervise his activities.
Brokerage firms can be held responsible for unsuitable investment recommendations, selling away, and failure to disclose investment risks. If you invested with John Matson or purchased South Bay Acquisitions LLC Bonds, you may be eligible to recover losses through FINRA arbitration.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors throughout the U.S. and have recovered millions of dollars in investment losses on behalf of our clients.
Frequently Asked Questions (FAQ)
1. What is the current status of the SEC’s case against John Matson?
A final judgment was entered in March 2025, confirming that Matson and South Bay Acquisitions defrauded investors and misused over $1.5 million in investor funds.
2. Is John Matson still allowed to work in the securities industry?
No. Both the SEC and FINRA have permanently barred John Matson from working in any capacity in the securities industry.
3. Can I recover losses from investments in South Bay Acquisitions LLC Bonds?
Yes. If you invested with John Matson, you may be able to recover your investment losses through FINRA arbitration. Contact The White Law Group for a free case review.
If you are concerned about your investments with John Matson, South Bay Acquisitions, or LPL Financial, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information, please visit whitesecuritieslaw.com.
