Finra Bars Former E-Trade Broker Who Resigned While Under Review for Transferring Client Funds

A former E-Trade Securities broker in Alpharetta, Georgia has been barred by the Financial Industry Regulatory Authority for refusing to provide information and documents for its investigation into allegations that he transferred funds from a client’s account into one to which he had access, according to a letter of settlement finalized Tuesday.

Matthew J. Chimento, who first registered as a broker in March 2018 when he joined E-Trade Securities, which was then acquired by Morgan Stanley in 2020, voluntarily resigned from the wirehouse in November 2023 while under review for allegedly transferring the funds without authorization from the client’s account, according to the letter.

A termination notice filed by Morgan Stanley in December 2023 triggered Finra’s investigation of Chimento, who is no longer a registered broker, Finra said. Chimento’s refusal to provide Finra the requested documents and information violated its rule mandating participation in its investigations and its catch-all Rule 2010, and automatically triggered an industry bar, according to the letter. 

Chimento, who accepted the bar without admitting or denying the allegations, referred a request for comment to his lawyer. Chimento’s lawyer in the settlement, Jeffrey Brickman of an eponymous firm in Atlanta, did not respond to a request for comment. 

“Mr. Chimento resigned in November 2023 following this matter being brought to our attention and the funds in question were returned to the client,” a Morgan Stanley spokesperson said in a statement.  

Chimento at E-Trade held the title of senior specialist, participant services, and in March 2023, after Morgan Stanley’s acquisition of the online broker, he had the corporate title of platinum relationship manager, according to his registration records.

He previously worked in sales roles with BasicCode Compliance, Credit Suisse, Barclays and HSBC, according to his LinkedIn profile.