Broker Investigation: FINRA Bars RBC Broker Scott Matalon after Allegations
The White Law Group is investigating potential securities claims involving Scott Matalon and the liability his employers may have for failure to properly supervise him. According to public records, FINRA, the self-regulator, has reportedly barred financial advisor Scott Matalon (CRD#: 4637378) from working in the securities industry.
Matalon reportedly refused to provide documents and information requested by FINRA in connection with its investigation of allegations made in a statement of claim filed against his member firm by one his clients.
A customer complaint filed in May 2023 allege that Matalon allowed a now deceased client to make withdrawals from accounts owned solely or jointly by the client and allowed the client to surrender his insurance policy despite the advisor being aware of the client’s alleged health issues.
Claimants further allege the former advisor recommended an accountant to Claimants who the former advisor then colluded with to convert funds from the Claimants. In addition, Claimants allege the former advisor charged excessive fees, made unsuitable investment recommendations and failed to notify them regarding activity on their accounts.
Claimants’ causes of action are negligence, misrepresentation, failure to supervise, conspiracy to convert funds, breach of fiduciary duty, and unsuitability. Claimants allege compensatory damages of $2.5M, punitive damages, interest, fees and costs. The settlement amount was $50,000, according to FINRA.
A second complaint was reportedly filed in November 2023 alleging unsuitable investments. The damage amount requested was $1,500,000. The case settled for $500,000, according to FINRA.
FINRA BrokerCheck Report – Scott Matalon
According to this FINRA BrokerCheck report, Scott Matalon was affiliated with the following firms during his career, among others:
08/15/2019 – 08/02/2021, RBC CAPITAL MARKETS, LLC (CRD#:31194), JERICHO, NY,
B, 05/31/2013 – 08/16/2019, AMERIPRISE FINANCIAL SERVICES, INC. (CRD#:6363), NEW YORK, NY
B, 09/18/2009 – 05/31/2013, NATIONAL SECURITIES CORPORATION (CRD#:7569), WESTBURY, NY
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
FINRA BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. You can use the tool to verify if a broker or brokerage firm is registered with FINRA, review their employment history, licensing status, and any regulatory actions or complaints filed against them.
Filing a Complaint against your Brokerage Firm
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. 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.
If you have suffered investment losses with Scott Matalon and RBC Capital Markets, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
About The White Law Group
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses.
Frequently Asked Questions (FAQs)
FAQ 1: Why was RBC broker Scott Matalon barred from the securities industry?
According to FINRA, Scott Matalon was barred after he reportedly failed to provide documents and information requested in connection with an investigation into client allegations. Complaints against him included unsuitable investment recommendations, excessive fees, misrepresentation, and conspiracy to convert funds.
FAQ 2: Can investors recover losses caused by broker misconduct at RBC Capital Markets?
Yes. If a broker engages in misconduct such as unsuitable investment recommendations, excessive fees, or misrepresentation, the brokerage firm may be held liable for negligent supervision. Investors may be able to pursue recovery of losses through FINRA arbitration.
FAQ 3: How can I check if a financial advisor has regulatory actions or complaints?
Investors can use FINRA’s free BrokerCheck tool to review a broker’s professional history, employment record, licensing status, and any customer disputes or regulatory sanctions. This resource can help investors verify whether their financial professional has faced complaints or disciplinary actions.
