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Matthew McDonald Embroiled in Third Investor Dispute

Dec 29, 2021 Misrepresentation

Matthew McDonald (CRD #: 2837629), a broker registered with Sigma Financial Corporation, is involved in his third investor dispute, according to his BrokerCheck record, accessed on December 6, 2021. He is also a registered investment advisor with SPC. 

According to the allegations filed on October 5, 2021, Matthew McDonald misrepresented investments. The complaint further alleges that  Matthew McDonald failed to conduct adequate due diligence for the investment products. The damage amount requested is $50,000 the case is still pending. 

This is not Matthew McDonald's first case alleging misrepresentation. 

  1. On March 2, 2021, an investor alleged that Matthew McDonald misrepresented investments purchased between 2014 and 2015. The investor further claimed the investments were unsuitable. The damage amount requested was $37,000; however, the case was denied. Investors should know that they can still recover losses following a denial. 
  2. On September 22, 2020, a dispute was filed against Matthew McDonald alleging misrepresentation and negligence in connection with investments purchased between 2010 and 2015. The allegations further state that Matthew McDonald failed to conduct adequate due diligence on the said investments. The damage amount requested was $225,000 the case is still pending. 

A broker who recommends a security or investment is subject to ethical standards enforced by law. Such laws include: 

FINRA Rule 2111: Suitability

Brokers must consider their investor’s financial goals, risk tolerance, age, and investing experience when they recommend an investment.  

According to FINRA Rule 2111, brokers may be liable for investor unsuitability claims if they fail to take the four factors listed above into account and recommend investments that are not suitable. A broker must have exercised due diligence and have an adequate reason for believing that an investment will also be suitable or beneficial for the investor.  

FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits.  

Any of the following can be considered as misrepresentation or omission 

    • Inadequate due diligence concerning security offerings 
    • Failure to disclose of all material risks 
    • Failure to disclose all transaction costs 
    • Unrealistic presumptions for investment projections
    • Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment.  

FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade

Matthew McDonald's alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Background Information 

Matthew McDonald has passed the following exams: 

  • Series 65 - Uniform Investment Adviser Law Examination 
  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 62 - Corporate Securities Limited Representative Examination 
  • Series 22 - Direct Participation Programs Representative Examination 
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination 

Matthew McDonald is a registered broker in 10 states and a registered investment advisor in Michigan.  

Matthew McDonald has also worked with: 

  • The Equitable Life Assurance Society of The United States (CRD#:4039) 
  • AXA Advisors (CRD#:6627) 

Kurta Law Can Help 

If you worked with Matthew McDonald and you have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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.