Matthew Eckstein: Syosset Financial Advisor Sanctioned
A disciplinary action taken by the Financial Industry Regulatory Authority against former Syosset, New York broker Matthew Eckstein (CRD# 2997245) barred him over allegations he sold more than $1.3 million in “undocumented” investments that were part of a “spurious investment scheme.” A former representative of Sisk Investment Services and Gould Ambroson & Associates, Eckstein was barred from acting as a broker or otherwise associating with a broker-dealer firm.
According to a FINRA decision (No. 2017054146302) dated August 2018, Matthew Eckstein was named in a FINRA complaint alleging he sold more than $1.3 million in investments that were not memorialized in notes or other agreements, nor described in written informational materials, and which FINRA describes as part of “a spurious investment scheme run by a close friend of Eckstein.” He allegedly performed no due diligence on the investments’ issuer before recommending them to at least four customers, “including elder, conservative investors,” without disclosing that he had no reasonable basis to make the recommendations. FINRA alleged further that “he knew or was reckless in not knowing” the investments’ issuer could not repay its obligations to his customers, and did not inform them that he held “signature authority on the bank account of an affiliate of the issuer that was receiving investor funds,” which meant he had the power to access the funds his customers “were purportedly investing.”
FINRA’s complaint went on to state that Eckstein did not disclose to his investors that he had received funds exceeding $100,000 from the issuer’s CEO, a “long-time friend” of his. FINRA stated that this omission (as well as other alleged misrepresentations and omissions) denied his customers the ability to make informed decisions about whether to invest in the products he was recommending. FINRA also concluded that these recommendations were unsuitable, and that the sales constituted private securities transactions completed outside the scope of his member firm, to which he did not provide prior written notice of the transactions and from which he did not seek written authorization to participate in such. As a result of the alleged foregoing conduct, he was barred from acting as a broker or otherwise associating with a broker-dealer firm. He was also ordered to pay restitution totaling $961,781.
Matthew Eckstein’s disclosure also describe several customer complaints against him; some resulted in awards to the customer, some remain pending.
A 2018 complaint, for instance, alleged that as a representative of three firms—Gould, Ambroson & Associates, Sisk Investment Services, and Invictus Timing Service—he recommended unsuitable investments, misrepresented and omitted material facts, breached his fiduciary duty, churned investments, and committed fraud. The complaint resulted in an award to the claimant of $100,000 plus interest.
Another 2018 complaint alleged that as a representative of Gould Ambroson & Associates, he recommended unsuitable investments, committed common law fraud, breached contract, breached his fiduciary duty, engaged in RICO violations, and converted funds. The complaint resulted in an award to the claimants of more than $1.3 million.
Matthew Eckstein is currently not registered as a broker or investment advisor. His employment history includes Sisk Investment Services in Syosset, New York and Gould Ambroson & Associates in Garden City, New York. He currently holds zero state licenses and has passed four securities industry qualification examinations.