FINRA barred former Mutual of Omaha financial adviser Edward Earl "Ed" Matthes after he failed to cooperate with an investigation into allegations he misappropriated funds from clients and provided false account statements in an effort to conceal the misconduct.
Mutual of Omaha discharged its stockbroker Matthes (CRD #2788055) earlier in March for allegedly creating fictitious account statements and diverting customer funds for personal use.
Mutual Omaha released a statement after the Oconomowoc Police Department (Wisconsin) received several complaints against Matthes alleging fraud, subsequently turning over those allegations to the FBI: "We discovered that Mr. Matthes may have misappropriated clients' deposits and provided false account statements to his clients," the statement read. "Mutual of Omaha has alerted several law enforcement agencies and is fully supportive of investigative efforts. Mutual of Omaha is committed to our policyholders, and we are proactively working with impacted customers."
According to his BrokerCheck report, Mutual of Omaha broker Matthes, who was registered as both a broker and financial adviser, in 2012 settled an customer dispute alleging unsuitable transfer of funds to a variable annuity for $75,000, and in 2006, resigned from Mass Mutual (MML) Investor Services in the midst of allegations of misrepresentation after he sold a variable annuity to a Missouri resident.
According to a regulatory disclosure from the State of Missouri's Securities Division, Matthes engaged in unsuitable sales by investing 85-90% of a customer's liquid net assets into the variable annuity, receiving a two-month suspension from selling variable annuities as punishment.
Matthes took a position as President of the Downtown Oconomowoc Business Association in December of 2018.
If you have invested with former Mutual of Omaha financial adviser Ed Matthes or any broker or representative who has unsuitably sold or recommended a variable annuity, or whose misappropriation of funds and attempt to conceal the misconduct by issuing fictitious account statements has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.