Scott Matalon Barred By FINRA For Failing To Provide Documents

Scott Matalon (Scott Jay Matalon CRD# 4637378) is a former registered broker and investment advisor whose last known employer was RBC Capital Markets, LLC (CRD# 31194) of Jericho, NY. His previous employers include Ameriprise Financial Services, Inc. (CRD# 6363) of New York, NY, National Securities Corporation (CRD# 7569) of Westbury, NY, and Gilford Securities Incorporated (CRD# 8076) of Melville, NY. He has been in the industry since 2003.

FINRA initiated a review of a customer claim filed against Ameriprise during Matalon’s employment with the firm, from 05/31/2013 through 08/16/2019. FINRA sent Matalon a letter on April 6, 2023, requesting Matalon produce documents and information related to the investigation.

On May 16, 2023, Matalon’s counsel stated in a phone call to FINRA staff that he would not produce the requested documents and information at any time. Subsequently, FINRA issued a Letter of Acceptance, Waiver & Consent (AWC) barring Matalon from affiliation with any FINRA member broker-dealer in any capacity. Matalon signed the AWC letter on 5/24/2023, and the bar became effective on June 6, 2023.

Although Matalon’s employment with RBC Capital Markets ended on 08/02/2021, two customer disputes were filed roughly one year apart with identical allegations:

Claimants allege an advisor formerly associated with Respondent allowed a now deceased client to make withdrawals from accounts owned solely or jointly by the client and allowed the client to surrender his insurance policy despite the advisor being aware of the client’s alleged health issues. Claimants further allege the former advisor recommended an accountant to Claimants who the former advisor then colluded with to convert funds from the Claimants. In addition, Claimants allege the former advisor charged excessive fees, made unsuitable investment recommendations and failed to notify them regarding activity on their accounts. Claimants’ causes of action are negligence, misrepresentation, failure to supervise, conspiracy to convert funds, breach of fiduciary duty, and unsuitability. Claimants allege compensatory damages of $2.5M, punitive damages, interest, fees and costs.

The first claim was filed on 7/21/2022, the second on 5/19/2023, each requesting the same amount of damages. Both are listed as “pending.” No additional information is available, including where Matalon was employed when these allegations took place.

Also in Matalon’s CRD is a criminal charge of Kidnap-Inflict Bodily Harm False Imprisonment – adult Domestic Battery by Strangulation Touch or Strike Battery/D.” The charge is dated 7/5/2021 and is still listed as “pending” as of this writing.

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