Matthew Eckstein Barred by SEC and FINRA

Matthew Eckstein (CRD #: 2997245), a broker formerly registered with Sisk Investment Services, has been barred by the SEC and FINRA, according to his BrokerCheck record, accessed on July 4, 2023. Read on to learn more about his alleged conduct as a broker.

Bar by SEC

On May 11, 2023, the Securities and Exchange Commission barred Matthew Eckstein. According to the SEC, Matthew Eckstein pleaded guilty to grand larceny in the first degree and conspiracy in the fourth degree on September 26, 2019, in violation of Sections 155.42 and 105.10(1) of the Penal Law of the State of New York.

These charges alleged that Matthew Eckstein defrauded investors in securities and obtained money and property through the use of materially false and misleading statements from 2013-2018.

On July 11, 2022, Matthew Eckstein was sentenced to 3 1/2 to 10 1/2 years of imprisonment and ordered to pay $6,807,770.52 in restitution.

Sanctions

On May 11, 2023, the SEC barred Matthew Eckstein from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical ratings organizations (NRSRO)

He was also barred from participating in penny stock offerings.

Suspensions by FINRA

On August 17, 2017, Matthew Eckstein received a Letter of Suspension alleging that he failed to respond to a request for information. His suspension ran from September 11 to November 24, 2017.

In January and November 2019, Matthew Eckstein was suspended by FINRA three times for allegedly failing to comply with arbitration awards/settlement agreements or to adequately respond to requests for information as to the status of his compliance.

New Jersey Regulatory Action

On September 18, 2019, the New Jersey Bureau of Securities revoked Matthew Eckstein’s registration as a broker following his bar by FINRA.

Pending Investor Disputes

On July 2, 2018, several investors alleged that Matthew Eckstein made misrepresentations, breached his contract, violated NASD/FINRA and SEC rules, and violated securities and consumer laws in New Jersey, Pennsylvania, and North Carolina.

The clients further alleged negligence and failure to supervise. This misconduct allegedly took place between 2010 and 2015.

The clients seek $999,000 in this pending dispute.

A similar dispute, filed on June 1, 2018, alleged that Matthew Eckstein engaged in the following:

• Common law fraud
• Sale of unregistered securities
• Violation of New Jersey securities and consumer laws
• Overconcentration and other violations of the suitability rule
• Negligent supervision

The client seeks $850,000 in this pending dispute.

FINRA Rule 2020

The misrepresentation of information related to investments violates FINRA Rule 2020, which bans the use of manipulative, deceptive, and otherwise fraudulent tactics to influence the purchase and sale of securities.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

Securities Act of 1933

Section 5(a) of the Securities Act of 1933 prohibits the sale of unregistered securities.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. These profiles contain information such as investors’ risk tolerance, investment goals, and tax status.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

Settled Disputes

On August 14, 2018, an investor named Matthew Eckstein in allegations of the following:

• Fraud
• Misrepresentation and omission
• Churning and other violations of suitability
• Failure to supervise
• Breach of contract
• Breach of the duty of good faith and fair dealing

An arbitration award made Matthew Eckstein liable for $100,000 in damages plus interest. You can read the arbitration award here.

On June 5, 2018, Matthew Eckstein was named in a dispute alleging the following with regard to an investment in Conmac Funding Corporation:

• Common law fraud
• Conversion
• Violations of the Racketeer Influenced and Corrupt Organizations Act (RICO)
• Breach of contract
• Negligent supervision
• Violation of the suitability rule

An arbitration award made Matthew Eckstein liable for $1,318,706.66 in damages plus interest. You can read a copy of the arbitration award here.

On February 8, 2018, an investor named Matthew Eckstein in a dispute alleging the following in relation to an investment in Conmac Funding Corporation:

• Common law fraud
• Misrepresentation and omission
• Violation of the suitability rule
• Violation of Florida state statutes and blue sky laws, including Florida Statutes 501.204 and 517.301

An arbitration award made Matthew Eckstein liable for $314,407 in damages as well as $157,203.50 in attorneys’ fees. You can read the arbitration award here.

Florida Statutes

Florida Statute 501.204 prohibits unfair, deceptive, or “unconscionable” acts or practices, and unfair methods of competition.

Florida Statute 517.301 prohibits the making of fraudulent transactions, the falsification or concealment of facts, and other fraudulent practices.

Criminal Charges

On June 12, 2018, Matthew Eckstein was charged with the following:

• Three counts of second-degree grand larceny
• One count of third-degree grand larceny
• Two counts of second-degree grand larceny
• Two counts of first-degree scheme to defraud
• Two counts of fourth-degree conspiracy

These charges are currently listed as pending.

Bar by FINRA

On April 27, 2018, the FINRA Office of Hearing Officers filed a complaint alleging that Matthew Eckstein sold over $1.3 million in purported investments that were not described in any written materials, notes, or other agreements, and that may have been part of a scheme run by a close friend (“KB”).

According to the complaint, Matthew Eckstein allegedly did not conduct due diligence on the issuer before recommending the investment to at least four clients. In doing so, he allegedly made material misrepresentations and omissions, including claiming that the investment was “fully guaranteed.”

Additionally, he allegedly failed to inform these clients that he would have the ability to access the funds they invested and that he had received over $100,000 from KB, the CEO of the issuer.

Matthew Eckstein allegedly also failed to retain certain client communications concerning these investments, such as emails, text messages, and faxed documents.

The Office of Hearing Officers further alleged that Matthew Eckstein failed to provide information and documents requested by FINRA during its investigation.

The complaint alleged that Matthew Eckstein violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; FINRA Rules 8210, 4511, 2111, 2020, and 2010; and NASD Rule 3040.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 bans manipulative, deceptive, and otherwise fraudulent activities relating to the securities business. Rule 10b-5 extends this to include fraudulent schemes, untrue statements, and omissions of fact.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply records, information, and testimony upon request by FINRA.

FINRA Rule 4511

FINRA Rule 4511 requires that firms maintain accurate books and records.

FINRA Rule 3280

FINRA Rule 3280 requires brokers to seek approval from their firm before engaging in private securities transactions. This includes selling away, which is the practice of brokers selling investments not offered or approved by their firm.

Sanctions

On August 28, 2018, the Office of Hearing Officers issued a decision barring Matthew Eckstein and ordering him to pay $961,781 in restitution, plus interest.

You can read a copy of the initial complaint here and the OHO’s decision here.

Background Information

Matthew Eckstein has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 24 – General Securities Principal Examination

He previously worked for Sisk Investment Services (CRD#:19406) and Gould, Ambroson & Associates (CRD#:17412).

Kurta Law Can Help

If you worked with Matthew Eckstein and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.