A Cheshire investment advisor who was accused of stealing thousands of dollars from an elderly client pleaded guilty Wednesday to one count of wire fraud.
Matthew O. Clason, 39, of Cheshire, waived his right to indictment and entered the plea in a proceeding before U.S. District Court Judge Michael P. Shea in Hartford.
Clason faces up to 20 years in prison at his sentencing, which is scheduled for Aug. 5. Clason must pay restitution, though the amount has yet to be determined. Federal prosecutors believe approximately $639,380 is owed, but the defendant asserts the loss was less. The judge will ultimately determine the amount Clason must pay.
Clason allegedly stole money from a client, a 73-year-old retired woman who lives in New Britain.
In addition to the criminal case, Clason is also the subject of a civil proceeding in connection with the woman’s finances.
The U.S. Securities and Exchange Commission last year filed an emergency civil action in U.S. District Court seeking to freeze Clason’s assets and secure injunctive relief and civil penalties.
The SEC claimed Clason cultivated a personal relationship with the woman, including driving her to appointments and running errands for her. They would meet frequently and the woman “considered Clason a good friend,” documents show.
Clason and the woman shared a joint checking account since 2018 so Clason would have access to it for investment purposes and so Clason could make cash withdrawals so the woman could pay for expenses, according to the SEC. This was for convenience, as the client doesn’t drive and has limited mobility and other health conditions, documents show.
Clason allegedly withdrew money without the woman’s permission or knowledge for his own personal use, such as to pay his credit card bills.
Clason had been providing investment services to the woman since approximately 2015. The client had approximately $482,000 in multiple accounts, but believed she should have around $1 million under Clason’s management, according to the government.
Documents show Clason was an investment advisor and a registered representative of Lincoln Financial Advisors Corporation, and then LPL Financial LLC.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
