SEC Files Regulatory Action Against Matthias O’Meary Following Civil Suit

Matthias O’Meary (CRD #: 5055402), a broker formerly registered with BB&T Securities, has been the subject of an SEC lawsuit and regulatory action, according to his BrokerCheck record, accessed on November 12, 2024. Keep reading to learn more about his alleged conduct as a broker.

SEC Regulatory Action

On October 15, 2024, the Securities and Exchange Commission initiated a regulatory action against Matthias O’Meara and municipal advisor Choice Advisors in response to final judgment being entered in a civil complaint filed by the SEC.

The complaint alleged that Matthias O’Meara entered into an inappropriate fee-splitting agreement between Choice Advisors and a municipal underwriting firm wherein Choice Advisors would split the underwriter’s fees for bonds involving Choice Advisors’ clients.

The complaint further alleged that Matthias O’Meara allegedly improperly operated as both a registered representative for the underwriting firm and as a municipal advisor serving as a fiduciary for two clients and failed to disclose the conflicts of interest this created. The SEC also alleged that he and Choice Advisors unlawfully engaged in municipal advisory activities as the firm was not registered with the SEC or the MSRB.

This regulatory action is currently pending.

SEC Civil Suit

On September 22, 2021, the SEC filed a civil suit against Matthias O’Meara and Choice Advisors, alleging that they provided municipal advisory services to four charter school clients without the proper registration, breached their fiduciary duty to these clients, and engaged in deceptive conduct in 2018.

The SEC alleged that Matthias O’Meara and Choice Advisors failed to register with either the SEC or the MSRB during the relevant period, and did not disclose their unregistered status to their clients.

Matthias O’Meara allegedly formed a fee-splitting arrangement with a municipal underwriting firm, despite such agreements being prohibited between municipal advisors and underwriters with regard to offerings for which the municipal advisors provide advice.

Despite the conflict of interest allegedly created by this agreement, the SEC alleged that the defendants informed their four clients that they had no conflicts of interest.

Under this agreement, Matthias O’Meara allegedly deceptively operated as both a registered representative for the underwriter firm and as a municipal advisor acting as his clients’ fiduciary. He allegedly used this dual role to increase the overall fees paid by two clients to enrich himself and Choice Advisors, resulting in one school paying approximately $40,000 in additional fees.

Judgment rendered enjoined Matthias O’Meara and Choice Advisors from future violations of Section 15B(c)(1) of the Securities Exchange Act of 1934 and MSRB Rules G-17 and G-42, and Choice Advisors from future violations of Section 15B(a)(1)(B) of the Exchange Act and MSRB Rule A-12.

The defendants were also ordered to pay unspecified penalties/fines and a disgorgement of $79,889.

Securities Exchange Act of 1934

Section 15B(a)(1)(b) of the Securities Exchange Act prohibits municipal advisors without registration from providing advice to or on behalf of municipal entities with regard to municipal financial products or the issuance of municipal securities.

Section 15B(c)(1) of the Securities Exchange Act of 1934 bans brokers, dealers, and municipal securities dealers from manipulating or deceiving investors through fraudulent devices.

MSRB Rules

MSRB Rule A-12 requires brokers, broker-dealers, and municipal securities dealers to register with the MSRB before engaging in municipal securities activities.

MSRB Rule G-17 requires brokers, dealers, and municipal securities dealers and advisors to engage in fair dealing and prohibits them from engaging in unfair and deceptive practices.

MSRB Rule G-42 requires municipal advisors to uphold certain standards of ethical conduct, uphold their duty of care towards clients, and disclose conflicts of interest to clients before or upon engaging in advisory activities.

Background Information

Matthias O’Meary has passed the following exams:

• SIE – Securities Industry Essentials Examination
• Series 50 – Municipal Advisor Representative Qualification Exam
• Series 7 – General Securities Representative Examination
• Series 53 – Municipal Securities Principal Examination

He previously worked for BB&T Securities (CRD#:142785) and B. C. Ziegler and Company (CRD#:61)

Kurta Law Can Help

If you worked with Matthias O’Meary 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 that 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.