Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Edward Matthes (Matthes) has engaged in a misappropriation scheme. Matthes, formerly registered with Mutual of Omaha Investor Services, Inc. (Mutual of Omaha) and operating out of Oconomowoc, Wisconsin, has been accused by more than 10 customers of engaging in securities fraud and misappropriating their funds.
In March 2019, Mutual of Omaha terminated Matthes employment stating that Matthes was discharged for creating fictitious account statements and diverting customer funds for his own personal use. Also in March of 2019 the Federal Bureau of Investigation (FBI) opened an investigation into Matthes for alleged misappropriation of funds. Since then over ten customers have filed complaints alleging that Matthes misappropriated funds by diverting assets into his own bank account and created fictitious account statements.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in misappropriation schemes. Matthes activities in the sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.