National investment loss lawyers KlaymanToskes is investigating broker John Matson (CRD# 1796541) of South Bay Acquisitions and LPL Financial, who is currently facing charges by the Securities and Exchange Commission (“SEC”) after he allegedly defrauded investors in a Ponzi scheme, by misappropriating investment funds and using them to pay returns to earlier investors, as well as for his personal expenses, and misleading his clients about the security and management of their investments.
According to the SEC’s complaint, between January 2012 and September 2021, Matson sold securities with a face value of $1,560,000 issued by South Bay to five investors, raising approximately $1,535,000. The securities, described as “LLC Bonds” were functionally promissory notes, and included language stating that Matson and South Bay Acquisitions would manage the proceeds as fiduciaries, promising investors 12 to 20% interest.
The SEC’s complaint further disclosed that, despite his obligation to act as a fiduciary, Matson immediately and consistently transferred money from South Bay or otherwise diverted South Bay funds (including some South Bay funds earned from another source) to his personal account, in transactions totaling approximately $1,566,250 through July 2023. Matson allegedly used investor funds to pay promised returns to earlier investors and to pay personal expenses.
According to FINRA BrokerCheck, broker John Matson was previously registered with LPL Financial from November 2017 to December 7, 2022, when LPL filed a Uniform Termination Notice for Securities Industry Registration (Form U5) disclosing Matson’s failure to fully cooperate with the firm’s internal investigation of his conduct for potential fraud or wrongful taking of property, or violating investment-related statutes, regulations, rules or industry standards of conduct.
Matson was permanently barred from acting as a broker by FINRA in December 2022, following his refusal to provide documents and information requested by FINRA in connection with the regulator’s investigation into a customer’s investments in promissory notes recommended by Matson. The findings stated that this matter originated from an 80-year-old customer’s call to the FINRA Securities Helpline for Seniors, in which the customer advised that Matson had recommended the customer invest in a promissory note and had thereafter ceased making promised interest payments on the note.
Investors that suffered losses with broker John Matson are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The article linked below contains important information relating to the complaint against broker John Matson:
If you suffered losses with broker John Matson, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million (exclusive of attorneys fees and costs) for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker John Matson. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
According to FINRA and the SEC, investment firms such as South Bay Acquisitions and LPL Financial are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker John Matson, or have concerns regarding your investment portfolio at South Bay Acquisitions and/or LPL Financial, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss your recovery options.