Recently, the Financial Industry Regulatory Authority (FINRA) has brought serious allegations against J Matheis, a former broker with Union Capital Company. The case, which has potential implications for investors, revolves around Matheis’ refusal to appear for an on-the-record testimony. This testimony was requested by FINRA as part of its investigation into potential sales practice violations committed by Matheis.
Allegation’s Seriousness and Case Information
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The seriousness of the allegations against Matheis can’t be understated. Refusing to participate in FINRA’s investigation is a serious violation, and it has led to Matheis being permanently barred from all capacities within the securities industry, as of August 24, 2023. This sanction, which Matheis consented to without admitting or denying the findings, is a significant penalty that underscores the gravity of the allegations.
Matheis’ refusal to testify is particularly concerning given his previous role at Union Capital Company, a brokerage firm with a CRD number of 110301. His tenure at the company spanned from July 16, 2018, to October 13, 2021. The potential sales practice violations under investigation could have occurred during this period, directly affecting the investments and financial security of Union Capital Company’s clients.
Explanation in Simple Terms and the FINRA Rule
In simple terms, when a broker like Matheis refuses to testify in a FINRA investigation, it hampers the regulator’s ability to protect investors by thoroughly investigating potential misconduct. This refusal is a violation of FINRA rules, specifically Rule 8210, which grants FINRA the authority to compel brokers and firms to provide information, testify, and produce documents in investigations.
FINRA’s rules are designed to maintain the integrity of the financial industry and protect investors. When these rules are violated, it can undermine investor trust and confidence in the market. In this case, Matheis’ refusal to testify prevents a full and transparent investigation into the alleged sales practice violations.
Why It Matters for Investors
The allegations against Matheis matter greatly for investors. His refusal to testify in the investigation could potentially shield harmful or unethical practices from being fully uncovered and addressed. This lack of transparency can erode investor confidence and potentially expose investors to financial harm.
Moreover, if the alleged sales practice violations are proven, it could mean that investors who worked with Matheis and Union Capital Company may have been subjected to improper or harmful investment strategies. This could potentially result in significant financial losses for these investors.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
There are several red flags that investors should watch for to protect themselves against financial advisor malpractice. These include frequent and unnecessary trading, recommending unsuitable investments, failure to disclose important information, and refusing to cooperate with regulatory investigations like the one involving Matheis.
Investors who believe they may have been harmed by Matheis or Union Capital Company can seek to recover their losses through FINRA Arbitration. This process allows investors to resolve disputes with brokers and firms in a fair, efficient, and cost-effective manner.
The national investment fraud law firm Haselkorn & Thibaut is currently investigating this case and offers free consultations to affected clients. With offices in Florida, New York, North Carolina, Arizona, and Texas, and over 50 years of experience, Haselkorn & Thibaut has a proven track record of successful financial recoveries for investors, boasting an impressive 98% success rate. Their toll-free consultation number is 1-800-856-3352, and they operate on a “No Recovery, No Fee” policy, demonstrating their commitment to helping investors recover their losses.
