Former Oconomowoc Investment Broker, Edward E. Matthes Sentenced to 63 Months in Federal Prison for $2,600,000 Scheme That Defrauded Elderly Victims
(STL.News) Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Edward E. Matthes (age 51), of Milwaukee, Wisconsin, was sentenced to 63 months in federal prison for carrying out a $2.6 million dollar investment scheme that defrauded 27 victims, most of whom were elderly. Matthes had earlier pleaded guilty to three counts of wire fraud, in violation of 18 U.S.C. § 1343.
The information presented at the sentencing hearing showed that Matthes was a prominent member of the Oconomowoc community who solicited family, friends, and community members to use his services as an independent broker-dealer for Mutual of Omaha Investor Services, Inc. (“Mutual of Omaha”). Matthes previously worked in the same capacity for Thrivent in St. Louis, Missouri, and Pewaukee, Wisconsin. According to court records, over the course of six years, Matthes persuaded his clients, which included his own parents and a cognitively disabled individual, to invest in fictitious Mutual of Omaha accounts which he claimed would perform better for them. Instead, Matthes diverted over $2.6 million into his personal accounts to enrich himself.