Ex-financial adviser sentenced to 63 months for fraud scheme

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MILWAUKEE (AP) — A former financial adviser has been sentenced in Milwaukee to more than five years in federal prison for scamming $2.6 million from 27 victims, including his own parents.

According to court records, Edward Matthes, 51, persuaded family, friends and community members in Oconomowoc to invest in fictitious Mutual of Omaha accounts. Matthes put the funds into his own bank account from 2013 to 2019 and used the money for home improvements, vacations, child support and other things, prosecutors said.

Matthes pleaded guilty to three counts of wire fraud in November 2020, the Journal Sentinel reported. The U.S. Department of Justice recently announced that Matthes was sentenced to 63 months in prison.

FBI Special Agent in Charge Robert Hughes said Matthes took advantage of vulnerable people.

“Most of his victims were elderly, and he spent years gaining their trust, only to wipe out a lifetime of their savings,” Hughes said. “I commend the tireless efforts of our special agents and law enforcement partners who worked jointly to bring this case to justice.”

Eastern District Court Judge Brett Ludwig, during sentencing, described Matthes’ conduct as “aggravated” and said he “cultivated trust” and maintained a “veneer of friendship” with his victims while he stole their retirement savings.