Defendant faces lengthy prison term for using clients’ money to pay off mortgage, child support and $80,000 Tiffany & Co. bill
A barred financial advisor stole $2.6 million from 23 clients – the majority of which were elderly - over a six-year period.
Edward Matthes, formerly of Mutual of Omaha Investor Services, entered a plea deal last week after being charged with three counts of wire fraud, according to financialadvisoriq.com.
The report said that Matthes convinced the clients to move money from their existing accounts purportedly to one sponsored by Mutual of Omaha, but instead transferred the funds to his own bank account to pay off credit cards, a mortgage, child support, vacations and more than $80,000 to Tiffany & Co.
In his plea agreement, Matthes admitted to stealing the money, claiming he did so under pressure to appear successful while his spending was out of control. He is now selling off assets in order to repay the restitution, some of which has already been repaid.
He faces up to 20 years in prison, plus a $250,000 fine, for each count of wire fraud. However, under the plea deal, prosecutors have agreed to recommend a sentence toward the lower end.
In January 2020, the SEC charged Matthes with defrauding 26 clients between April 2013 and March 2019, and barred him in February 2020.
