Zamansky LLC Investigates Potential Investment Fraud Claims Against Former LPL Financial Advisor John Nicholas Matson
Our firm is investigating potential investment fraud claims by customers of former LPL Financial LLC financial advisor John Nicholas Matson in Manhattan Beach, California.
In December 2022, Mr. Matson was barred from the Securities Industry by FINRA, the Financial Industry Regulatory Authority, for refusing to cooperate with their regulatory investigation. He consented to an Acceptance, Waiver and Consent (AWC) which stated that FINRA’s investigation originated from an 80-year-old customer’s call to the FINRA Securities Helpline for Seniors in which the customer advised that Mr. Matson had recommended the customer invest in a promissory note and had thereafter ceased making promised interest payments on the note.
Previously, in November 2022, Mr. Matson was terminated by LPL Financial for his sale to customers of investments that were not approved by the firm. This is often referred to as “selling away.”
According to his Broker-Check report, Mr. Matson is the subject of a recent investor arbitration against him and LPL Financial which alleges that he sold two promissory notes away from his firm: one promissory note in September 2021 for $200,000 with an interest rate of 7% and a one year guaranteed return of principal; and the second promissory note in January 2012 for $400,000 with an interest rate of 15% and guaranteed return of principal in 10 years. The complaint seeks to recover the $610,000 of principal and interest due on the promissory notes.
Anyone who was sold a promissory note by Mr. Matson at LPL Financial, or anyone who was his customer, may wish to have their investment accounts reviewed for potential investment fraud. From the allegations to date, Mr. Matson appears to have been “selling away” or misappropriating customer funds. His employer LPL Financial had a duty to supervise his activity for potential investment fraud, including that done “away” or outside the firm.
Our firm is investigating potential investment fraud claims against LPL Financial on behalf of Mr. Matson’s customers for failure to supervise, respondeat superior and “selling away.”
Contact an Investment Fraud Attorney to Discuss Your Legal Options
If you were a customer of LPL Financial or Mr. Matson and wish to discuss whether you have a case for potential investment fraud, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or email for a free evaluation of your potential legal rights.