The former Wells Fargo broker was banned after allegations of unsuitable trading for elderly client
On February 9, 2017, Matthew Christopher Maczko was permanently barred by the Financial Industry Regulatory Authority (FINRA) after Maczko consented to the sanction and FINRA’s findings.
FINRA found that between January 2009 and April 2016, Maczko made excessive and unsuitable trades on behalf of his elderly client, now 93 years old. FINRA also reported that Maczko inaccurately testified before FINRA that he had not spoken with other clients, also senior citizens, since his termination. However, telephone records revealed that he had in fact spoken with these clients several times in that period.
Maczko’s elderly client had four accounts with an average aggregate value of $3 million. The transactions by Maczko are reported to have generated commissions and fees totaling over $660,000 and nearly $400,000 in trading losses. FINRA found that this level of trading “was unsuitable for the customer given her investment profile; including her age, risk tolerance, and income needs.”
These alleged actions by Maczko violated FINRA’s suitability rules. A broker is required to know his or her clients and make suitable investment recommendations based on the client’s goals and financial situation, including the individual’s age and risk tolerance. Violating this and other financial industry rules while serving an elderly client could represent elder financial fraud.
With a career spanning 28 years in the securities industry, Maczko started working for Paine Webber in Oakbrook, IL. In 1988. He then worked for UBS Financial Services Inc., in Oakbrook Terrace, IL. Starting in 2008, he worked for Wachovia Securities, which then became Wells Fargo Advisors, LLC in Oak Brook, IL, until his termination September 2, 2016.
Maczko has had a history of customer complaints centered around allegations of unsuitable and unauthorized transactions, as well as misrepresentation. Since 1995, his former clients have been awarded damages of $1,430,000 as a result of these claims.
To learn more information about Matthew Christopher Maczko, you can read his BrokerCheck report, a complimentary service by FINRA. Claims of churning against a broker working at Wells Fargo are serious, as Wells Fargo has a duty to supervise its financial advisors.
If you lost money and believe it was the result of Maczko’s actions, you may be entitled to receive compensation. To speak with an experienced investment fraud and securities arbitration lawyer, contact the Silver Law Group.
The attorneys at Silver Law are leaders in the field of securities arbitration. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and routinely represents investors in securities arbitration claims.
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