The U.S. Securities and Exchange Commission claims a Cheshire investment adviser stole thousands of dollars from an elderly client.
The SEC filed an emergency civil action in U.S. District Court this week against Matthew O. Clason of Cheshire, seeking to freeze his assets and secure injunctive relief and civil penalties.
Clason is accused of stealing over $300,000 from a client, a 73-year-old retired woman who lives in New Britain, starting from at least December 2018.
The SEC claims 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,” the litigation says.
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.
The complaint alleges Clason liquidated securities in the woman’s accounts and transferred the proceeds from the sales to their joint bank account. Clason allegedly withdrew cash from the account several times and at different bank branches without the client’s knowledge, and never gave the money to her.
Clason had been providing investment services to the woman since approximately 2015. As of July 31, the client had approximately $482,000 in multiple accounts, but believed she should have around $1 million under Clason’s management.
Documents show Clason had been affiliated with LPL Financial LLC and Integrated Wealth Concepts LLC, both of Glastonbury.
According to the SEC’s litigation, Clason’s association with two firms, which the SEC did not identify, was terminated in August.
As of Friday, no attorney was listed yet as representing Clason in the civil case, and he could not be reached for comment.
Thomas Carson, a spokesman for the U.S. Attorney’s office, said Friday he could neither confirm nor deny the existence of a criminal investigation.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
