What You Need to Know
- Matthew O. Clason sold client assets and withdrew the proceeds from a joint bank account he held with the client, according to LPL.
- The ex-broker and advisor pleaded guilty to one count of wire fraud in May.
- LPL did not immediately respond to a request for comment.
The Securities and Exchange Commission barred the ex-LPL Financial broker who the regulator had said stole hundreds of thousands of dollars from a retired 73-year-old client by liquidating securities in her investment accounts and transferring the proceeds to a bank account held jointly with the client.
Matthew O. Clason of Cheshire, Connecticut, pleaded guilty in May to one count of wire fraud. The former broker and advisor pleaded guilty before U.S. District Judge Michael P. Shea in Hartford to misappropriating more than $600,000 from the client, according to Leonard C. Boyle, acting U.S. attorney for the District of Connecticut.
Clason recently submitted an Offer of Settlement that the SEC accepted, it said in an order filed on Tuesday.
As part of the agreement with the SEC agreed to by Clason, the SEC said it’s barring him from associating with any broker, dealer, investment advisor, municipal securities dealer, municipal advisor, transfer agent or nationally recognized statistical rating organization. Clason also agreed to be barred from participating in any offering of a penny stock.
“Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors,” the SEC said in the order.