NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Matthew Crump
AWC/2011028107401

Crump was the CCO at his member firm and utilized his position to convert approximately $14,000 from firm customers’ brokerage accounts by using fictitious documents to effect unauthorized transfers of securities and cash from the customers’ accounts to a trust account he established at his firm.

Crump transferred securities and cash worth approximately $4,000 from one customer’s account by using a fictitious letter of authorization to effect the conversion. The findings also stated that two days before the transfer, Crump used the firm’s systems to temporarily change the address on the customer’s account to Crump’s attention at his work address, the effect of which was to have correspondence and other notices relating to the account sent to him at his firm.

Crump used a fictitious retirement account distribution form and a fictitious letter of authorization to effect the conversion of securities and cash worth approximately $10,000 from another customer’s Individual Retirement Account (IRA) to the customer’s cash account, and Crump transferred the securities and cash from the customer’s cash account to the trust account he controlled. The customers did not know about or authorize the transfers.Crump used the unlawfully converted funds to pay for his personal and business expenses.

Matthew Crump: Barred

Tags: LOA