AFW Asset Management Investigation
Yesterday, the SEC completed its investigation and filed a complaint against Matthew Weitzman, who co-founded an investment advisory firm called AFW Asset Management. Zamansky & Associates has launched an investigation into whether AFW Asset Management further violated securities laws and if other financial services firms contributed and/or aided and abetted Matthew Weitzman’s alleged fraud.
Typically frauds of this nature cannot be maintained over time without the participation of major brand-name financial services firms. Throughout the SEC’s complaint, there are references to a broker-dealer which transacted extensive business with Matthew Weitzman and AFW Asset Management. Broker-dealers are required to conduct due diligence and comply with “know your customer” rules.
It’s likely that Matthew Weitzman and AFW Asset Management conducted business and transactions that should have been identified by a broker-dealer as “red flags” indicative of potential fraudulent behavior.
According the SEC’s complaint, Matthew Weitzman funneled money from client accounts into his own accounts to support a lavish lifestyle that included a multi-million dollar home, a stake in a race horse and numerous luxury automobiles. According to the SEC, Matthew Weitzman stole as much as $6 million from client accounts. AFW Asset Management has approximately $200 million under their management and hundreds of clients. The vast majority of AFW Asset Management’s assets were maintained by a single broker-dealer and the SEC contends that the same broker-dealer assisted Matthew Weitzman and AFW Asset Management in business development.
Separately, a New York Times article identified Charles Schwab as at least one of the major firms AFW Asset Management routinely contracted business with.
Zamansky & Associates is investigating potential wrongdoing related to internal controls, due diligence breakdowns and negligence which may have occurred.
We offer free consultations and ensure confidentiality. If you suffered losses, contact Zamansky & Associates.