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SEC Charges Former LPL Adviser with Stealing $330,000 from Retired Client

The Securities and Exchange Commission has filed an emergency action charging investment adviser Matthew O. Clason with stealing $330,000 from a retired 73-year-old client.

The Securities and Exchange Commission has filed an emergency action charging investment adviser Matthew O. Clason with stealing $330,000 from a retired 73-year-old client of the investment adviser and broker-dealer with which he was associated. The SEC seeks an asset freeze and other relief.

According to his BrokerCheck profile, Clason has been affiliated with Integrated Wealth Concepts and LPL Financial for more than three years. Although the firms were not named in the complaint, the SEC claims that he was fired by “the advisory firm” on August 13th for failing to comply with firm policies with respect to handling client funds, while “the brokerage firm” terminated his association on August 19th.

Since approximately 2015, Clason managed five accounts for his client, who had total assets under management of approximately $482,000 and believed that she had approximately $1 million.

The SEC noted that Clason established a joint checking with the client in 2018 for investment purposes. The client does not drive, has limited mobility, and other health conditions, so he would make cash withdrawals of a few hundred dollars at her request to cover miscellaneous monthly expenses.

From December 2018 to August 2020, the SEC alleges that there were 45 transfers out of her advisory account totaling $330,000, the bulk of which was funded by the sale of securities. Clason’s securities sales, transfers, and numerous, large cash withdrawals were neither known to nor approved by the client, the SEC claims.

The SEC also alleges Clason has at least $8,200 of the client’s money at his home and remains a joint signatory on the account. The regulators believe that unless restrained and enjoined, he will still have access to her money.

The SEC requests that the court enter an order freezing Clason’s assets, and also seeks permanent injunctive relief, disgorgement plus prejudgment interest, and civil penalties.

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