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Department of Justice
U.S. Attorney’s Office
Eastern District of Wisconsin

FOR IMMEDIATE RELEASE
Wednesday, November 25, 2020

Former Oconomowoc Investment Broker Charged With $2.6 Million Wire Fraud

Defendant Alleged to Have Defrauded at Least 23 Clients, Many of Whom Are Elderly

United States Attorney Matthew D. Krueger announced that, on November 25, 2020, he issued a three-count information charging Edward Matthes (age: 50) with wire fraud in violation of Title 18, United States Code, Section 1343, and that Matthes has entered into an agreement to plead guilty to the charges.

According to the written plea agreement filed in the case, Matthes, who previously was employed as an independent investment broker for Mutual of Omaha Investor Services, Inc. (MOIS), devised and executed a scheme to defraud his clients and to obtain money by means of materially false and fraudulent pretenses and representations.  The essence of Matthes’ scheme was to persuade clients to transfer investment funds from their existing accounts to a new MOIS-sponsored account, which Matthes claimed would perform better.  Instead of opening new MOIS accounts for his clients, Matthes deposited their money into his personal bank accounts and converted it to his own use.  Matthes lulled his clients into believing their investments were performing well by sending fictitious MOIS account statements and by phoning and meeting with clients to discuss the performance of their investments.  According to the plea agreement, Matthes fraudulently obtained more than $2.6 million dollars from at least 23 clients, many of whom are elderly.     

Each count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release following any prison term.

Pursuant to the plea agreement, Matthes has agreed to a 13-year debarment period, during which he will be prohibited from participating in, or having decision-making authority over, any employee benefit plan. 

An information is only a charging document, and is not evidence of guilt.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

United States Attorney Krueger commended the collaborative efforts of the Federal Bureau of Investigation (FBI), the U.S. Department of Labor, Employee Benefits Security Administration, and the Oconomowoc Police Department during the investigation of this matter.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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For Additional Information Contact: Public Information Officer Kenneth Gales

Kenneth.Gales@usdoj.gov

414-297-1700

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Updated November 25, 2020