Ponzi Scheme Attorneys

Ex-LPL Broker John Matson Accused of Operating Ponzi Scam. Our Ponzi Scheme Attorneys Are Investigating Investor Losses

If you are someone who sustained losses while working with former LPL Financial broker John Nicholas Matson, also the principal of South Bay Acquisitions, Shepherd Smith Edwards and Kantas (investorlawyers.com) want to talk to you. Matson, who was barred by the Financial Industry Regulatory Authority (FINRA) in 2022 following allegations of promissory note fraud involving an elderly customer, was fired by the broker-dealer that same year. Now, the US Securities and Exchange Commission (SEC) has filed charges accusing him of defrauding investors, including ex-brokerage customers, in an alleged Ponzi scam.

The SEC contends that between January 2012 and September 2021, Matson and his company made unregistered offerings of securities, raising more than $1.5M in the process. Through these “LLC Bonds” from South Bay, investors’ money was then allegedly used for Matson’s personal use.

The Commission alleges that South Bay was run like a Ponzi scam in which investor money was used to pay earlier investors their promised returns. Not only that, but also his company purportedly promised interest rates of 12-20%.

According to Jon Matson’s CRD, LPL Financial fired Matson for allegedly taking part in unapproved investments without notifying or obtaining the brokerage firm’s approval—a practice known as selling away. Also listed are two customer disputes involving him that were settled for $180K each.

Why Would You Want To Contact Our Ponzi Scheme Attorneys?

Even if LPL Financial was unaware of Matson’s alleged outside activities, if he did, in fact, embroil you in any kind of investment scam, including a Ponzi fraud, you may be able to pursue damages from him and/or the brokerage firm if unsuitable investment recommendations, misrepresentations and omissions of the risks, selling away, misappropriation, securities fraud, breach of fiduciary duty, failure to supervise, negligence, and/or gross negligence occurred.

Our broker fraud lawyers represent investors who have been the victims of Ponzi scams and other kinds of financial advisor misconduct or negligence. This is not the kind of investment loss recovery case that you want to pursue without experienced securities representation by your side.

Unfortunately, there are financial advisors who may seek to take advantage of investors in an attempt to misappropriate their money. The brokerage firms with whom they are registered are required to properly oversee activities in customer accounts and make sure nothing fraudulent is taking place.

What Should You Do If You Suspect You May Be The Victim of Broker Misconduct?

• Do NOT attempt to resolve this dispute directly with the financial advisor, investment adviser, or broker-dealer. Sending them a letter or email could end up being used against you should your concerns become a lawsuit.
• Gather information about your investment losses, including records of investment accounts, account statements, and communications with your financial advisor.
• Contact Shepherd Smith Edwards and Kantas today to request your free, first case consultation with one of our savvy Ponzi scheme attorneys.

Becoming the victim of a Ponzi scam, or any kind of investment scheme, can lead to serious portfolio losses. Our Ponzi Scheme Attorneys have the skills, knowledge, and resources to maximize your chances for a full recovery if we determine that you have grounds for a claim and we decide to work together. More than 90% of our clients have received full or partial financial recovery.

Call (800) 259-9010 or contact us online.