Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Matthias O’meara (O’meara), previously associated with BB & T Securities, LLC, has at least one disclosable event. These events include one regulatory, alleging that O’meara recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint on October 15, 2024.
The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Choice Advisors, LLC (‘Choice’) and Matthias O’Meara (collectively Respondents). The Divison of Enforcement alleges that on September 22, 2021, the Commission filed a Complaint against Choice and O’Meara in the United States District Court for the Southern District of California in a civil action entitled Securities and Exchange Commission v. Choice Advisors, LLC and Matthias O’Meara,Case No. 21-cv-01669. The Complaint alleged that in May 2018, O’Meara left his employment at a national municipal underwriting firm to start Choice, a new municipal advisor focused on charter schools. While O’Meara was in the process of leaving the underwriting firm, he entered into an impermissible fee-splitting arrangement with the firm, by making an agreement for Choice to split the underwriter’s fees for upcoming bonds involving Choice’s municipal advisory clients. O’Meara then proceeded to improperly operate in a dual capacity with respect to two charter school clients, simultaneously acting as a registered representative for the underwriting firm, and also as a municipal advisor purporting to serve as his two clients’ fiduciary. Moreover, Choice and O’Meara unlawfully engaged in municipal advisory activities when Choice was not registered with the Commission or the MSRB. O’Meara and Choice then failed to disclose to their clients the conflicts of interest created by O’Meara’s dual role and by Choice’s unregistered status. The Complaint alleged that this misconduct violated the federal securities laws, including violations by both Respondents of Sections 15B(c)(1) of the Exchange Act and MSRB Rules G-17 and G-42, and further violations by Choice of Section 15B(a)(1)(B) of the Exchange Act and MSRB Rule A-12. On April 15, 2024, the Court granting the Commission summary judgment on six of its claims, and denying Choice and O’Meara’s motion in its entirety. Specifically, the Court found that Respondents breached their fiduciary duties to their clients by failing to disclose their unregistered status and O’Meara’s simultaneous employment with the underwriting firm and Choice, in violation of Section 15B(c)(1) of the Exchange Act and MSRB Rule G-42. The Court also ruled that Respondents’ impermissible fee-splitting arrangement with the underwriting firm violated MSRB Rule G-42. The Court further held that Respondents violated MSRB Rule G-17 by failing to deal fairly with their clients. In addition, the Court ruled that Respondents unlawfully engaged in unregistered municipal advisory activity, and that Choice failed to register with the Commission and the MSRB in violation of Section 15B(a)(1)(B) of the Exchange Act and MSRB Rule A-12. Additionally, the Court found that Respondents’ violations of the MSRB rules constituted violations of Section 15B(c)(1) of the Exchange Act’s prohibition against engaging in municipal advisory activity in contravention of any MSRB rule. On September 24, 2024, as amended October 7, 2024, the Court entered a final judgment against Choice and O’Meara. Among other things, the final judgment permanently enjoined Choice and O’Meara from future violations of Section 15B(c)(1) of the Exchange Act, and MSRB Rules G-17 and G-42. The final judgment further permanently enjoined Choice from future violations of Section 15B(a)(1)(B) of the Exchange Act and MSRB Rule A-12. The final judgment also imposed the following monetary remedies: O’Meara, disgorgement in the amount of $133,149 and prejudgment interest in the amount of $45,932; Choice, disgorgement in the amount of $79,889 and prejudgment interest in the amount of $27,559; O’Meara, a civil penalty of $133,149; and Choice, a civil penalty of $79,889.
