The SEC says it’s barred a former registered representative accused of running a Ponzi-like fraudulent scheme targeting mostly elderly retail brokerage customers.

The SEC charged Edward Matthes last month with defrauding 26 clients out of around $2.4 million between April 2013 and March 2019.

The regulator accuses Matthes of raising $1.4 million in an investment he claimed had a guaranteed minimum yield of 4% per year but in reality didn’t exist, according to an administrative proceedings document published by the SEC. Matthes then allegedly provided some of his clients with fake account statements to cover his fraud, the regulator says. Matthes allegedly raised an additional $1 million from unauthorized sales and withdrawals from variable annuity contracts that his brokerage clients held in accounts with him, according to the SEC.

Matthes allegedly used around $170,000 to make Ponzi-like statements to some investors and spent money on personal expenses, including home renovation, car payments and luxury items, the regulator says.

Matthes consented to the bar without admitting or denying the SEC’s findings, according to the document.

He began his financial services industry career in 1996 and has 21 disclosures on his record, beginning with a 2005 customer dispute alleging misrepresentation that was settled for $9,350, according to BrokerCheck.

He joined Mutual of Omaha in 2012, but the firm discharged him in March 2019 over allegations of “creating fictitious account statements and diverting customer funds for his own personal use,” according to his BrokerCheck record.

The same month, Finra barred Matthes over allegations of failing to provide requested information, according to his record.

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