Roland Craig Matatics, a former broker with MetLife Securities Inc. in Keene, N.H., has been permanently barred from the financial industry for misappropriating $10,000 from a customer suffering from dementia.
The money was later returned and Matatics submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle an action brought against him by the Financial Industry Regulatory Authority (FINRA). FINRA accepted the AWC on March 21.
The AWC resolved Matatics' violation of FINRA Rule 2010. The rule states: "A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade."
Without admitting or denying the allegations, Matatics consented to an entry of findings by FINRA that will appear in his permanent disciplinary record. In addition, he has been permanently barred from association with any FINRA member in any capacity.
New Hampshire's Bureau of Securities Regulators also filed a disciplinary action against Matatics, according to FINRA public disclosure records.
On March 15, his securities license was revoked for four years and he was ordered to pay the costs of the investigation, which was conducted by the state's Bureau of Elderly and Adult Services. The investigation found that Matatics had engaged in elder exploitation, a finding he has appealed, according to the press release.
Matatics misappropriated $10,000 from a customer identified only as CB, an elderly man suffering from dementia, the AWC said. Matatics used the ill-gotten money to pay his daughter's college tuition.
Since 2001, CB's attorney had power of attorney for CB with control over his financial affairs and health care. Matatics had served as CB's broker since 2004. Over time, CB became increasingly frail and mentally infirm. By the time he was 85, he was suffering from severe dementia, the AWC said.
Despite CB's infirmity, in July 2010, Matatics filled out a check from CB's personal bank account for $10,000 made payable to Matatics' daughter's college. He had CB sign the check, which Matatics then used to pay his daughter's tuition.
At the time CB signed the check, he did not have the cognitive function required to consent. Therefore, there was no authorization or consent for Matatics to use the funds.
Matatics was registered with MetLife Securities as an investment company and variable contracts products representative from July 2001 to September 2011 when MetLife fired him for misappropriating money from CB. He is no longer associated with any FINRA-member firm.
If you have been the victim of broker theft or securities fraud you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Firm, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.