SEC Files Emergency Action Against Clason

Posted on September 2nd, 2020 at 3:05 PM
SEC Files Emergency Action Against Clason

From the Desk of Jim Eccleston at Eccleston Law LLC:

The U.S. Securities and Exchange Commission (“SEC”) filed an emergency action against Matthew O. Clason, a former advisor with LPL Financial in Cheshire, Connecticut. According to the SEC, Clason stole more than $300,000 from a 73-year-old client.

According to the SEC, over a period of 20 months, Clason transferred approximately $330,000 from the client’s accounts to a joint checking account held by the client and Clason. The SEC alleged that Clason eventually withdrew at least $300,000 of the funds he transferred to the joint account. The SEC also alleged that Clason kept most withdrawals under $10,000 to avoid the requirement that the bank report the transaction.

The joint account had been set up so that Clason could cover small monthly expenses since the client had limited mobility, according to the SEC. At the end of July 2020, the client had $482,000 in her accounts, but believed that the accounts were worth roughly $1 million.

The SEC asked the Court to freeze Clason’s assets. Additionally, the SEC is seeking disgorgement and civil penalties against Clason.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Tags: SEC, Emergency Action, LPL Financial

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