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SEC Obtains Final Judgment Against Former Raymond James Advisor

The U.S. District Court for the Eastern District of New York entered a final judgment against Matthew Bell, enjoining him from violating certain provisions of the federal securities laws, on May 5, 2023.

According to the SEC’s complaint, starting in 2013, Bell was involved in a scheme to manipulate the price of the securities of CodeSmart Holdings Inc. The SEC alleged that Bell and another individual invested their brokerage customers in CodeSmart, including a number of elderly customers. The SEC alleged that the plan was for the defendants, including Bell, to profit at the expense of Bell’s customers. Bell allegedly personally sold his CodeSmart shares at the same time as purchasing shares in his customers’ accounts.

The SEC’s complaint charged Bell with violating SEC rules. On Dec. 22, 2022, the court entered a partial judgment against Bell by consent in which he agreed to be permanently enjoined from violations of the charged provisions and agreed to a penny stock bar. On May 5, 2023, the court entered a final judgment against Bell by consent in which he agreed to be permanently enjoined from violations of the charged provisions.

He agreed to disgorge $552,725 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding.

Bell previously worked for five firms from 1998 to 2013, including Raymond James.

Bell was also barred by The Financial Industry Regulatory Authority in January 2023 for the same allegations made by the SEC.

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