Federal authorities last week filed an injunction against a local investment advisor, alleging he stole more than $300,000 from one of his clients during a scheme that had been ongoing since late 2018.
The U.S. Securities and Exchange Commission announced in a news release early last week that it had filed an emergency court action against the accused advisor, Matthew O. Clason, 38, of Cheshire.
According to the SEC, Clason stole thousands of dollars from his client, a retired 73-year-old New Britain resident. The court action sought an asset freeze and other relief, according to the SEC.
The commission alleges Clason committed the fraud by liquidating securities funds in his client's accounts and then transferring the proceeds from those sales to a bank account held jointly with the client. That account, according to the SEC, was created “for investment purposes and to facilitate the payment of miscellaneous monthly expenses,” according to a description of the allegations.
However, the SEC alleges Clason withdrew money from that account, which was held with a national bank, on a number of occasions. He made those withdrawals, of which his client neither approved nor was aware, at different bank locations, according to the allegations.
According to documents filed in federal court in Connecticut, Clason exploited a personal relationship he had developed with his client, “and breached his fiduciary duty to the client to perpetrate his fraud and misappropriate hundreds of thousands of dollars.”
Clason has since been terminated from the financial firm with which he was associated, according to the allegations. The firm was not named.