FINRA

Without admitting or denying the findings, Mathews consented to the sanctions and to the entry of findings that he engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts (UITs) in customer accounts. The findings stated that Mathews recommended that his customers roll over UITs more than 100 days prior to their maturity on approximately 1,800 occasions. Indeed, although his customers' UITs typically had a 15- or 24-month maturity period, Mathews recommended that they sell their UITs after holding them for, on average, only 262 days and use the proceeds to purchase a new UIT. Of the approximately 1,800 early rollovers recommended by Mathews, approximately 330 were series-to-series rollovers. In other words, on approximately 330 occasions, Mathews recommended that his customers roll over a UIT before its maturity date in order to purchase a subsequent series of the same UIT, which, as noted above, generally had the same or similar investment objectives and strategies as the prior series. Mathews' recommendations caused his customers to incur unnecessary sales charges and were unsuitable in view of the frequency and cost of the transactions.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

three months

7/6/2021

10/5/2021

CUSTOMER ALLEGES THAT, IN AUGUST OF 2008, THE FINANCIAL ADVISOR FAILED TO FOLLOW THE CUSTOMER'S INSTRUCTIONS TO MOVE INVESTMENTS TO "THINGS LIKE CDS AND ANNUITIES", CAUSING UNSPECIFIED DAMAGES;CUSTOMER SUBSEQUENTLY WITHDREW COMPLAINT ON OCTOBER 23, 2008.

CUSTOMER WITHDREW ALLEGATIONS AND LETTER OF COMPLAINT ON OCTOBER 23, 2008. THE FIRM CONCLUDED THE ALLEGATIONS WERE WITHOUT MERIT.