Matthew Childs Suspended over Risky Investments

Matthew Childs (CRD# 3110916[1]), a broker registered with Portsmouth Financial Services, recommended non-traditional exchange-traded products without a reasonable basis, according to a recent sanction. MDF Law is investigating the San Francisco financial professional for similar conduct. If you have concerns about your accounts, contact us for a free consultation. 

To learn more about the allegations against Mr. Childs, continue reading this post. The information below is based on an October 10, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

FINRA Suspension Concerns ETPs

On August 13, 2024, FINRA undertook a disciplinary action against Mr. Childs. As a Letter of Acceptance, Waiver, and Consent (No. 2019063931601[2]) lays out, the action alleged that he recommended non-traditional exchange-traded products to retail customers “without having a sufficient understanding of the risks and features associated with the products.” As such, FINRA found, he lacked reasonable basis to recommend the products. The customers in question incurred more than $31,600 in total net realized losses on their investments. As a result of these findings, FINRA suspended Mr. Childs from registering in all capacities for two months. 

What Are Non-Traditional Exchange-Traded Products?

The AWC Letter also explains that NT-ETPs are “complex financial instruments.” They generally rebalance their portfolios every day, which is why FINRA has warned that they are “typically not suitable for retail investors who plan to hold theme for more than one trading session.” It also requires broker-dealer firms to establish and maintain “heightened supervisory obligations” with respect to complex products like NT-ETPs. Firms that fail to adequately train their representatives about NT-ETP products “before allowing them to recommend these products to customers” may violate FINRA Rules 3110 and 2010.

Past Dispute Alleged GWG Losses

Between 2012 and 2023, three parties of investors lodged disputes involving Mr. Childs that his member firms settled. These claims included allegations of misrepresentation, unsuitable recommendations, and failure to conduct reasonable due diligence. The most recent of the disputes, filed in 2023, involved an investment in GWG L Bonds[3]. The other two involved municipal and foreign bonds. His member firms settled the disputes for more than $300,000 in total.

FINRA: Matthew Childs Based in San Francisco

Matthew Childs launched his career as a broker in 1999, when he joined JWGenesis Financial Group in Boca Raton, Florida. He’s worked at a variety of firms over the years, including Morgan Stanley and Oppenheimer & Company. He registered with his current firm, Portsmouth Financial Services, in 2016, and still works in its San Francisco branch. With 24 years of experience as a broker, he has completed four industry exams, including the Series 66 and the Series 7. 

ETP Losses? Contact MDF Law

Did you lose money you couldn’t afford to lose on exchange-traded products or other investments recommended by Matthew Childs? Were your accounts concentrated in risky or illiquid products, or in investments whose risks were not fully explained? You may be able to file an arbitration claim to recover your losses. At MDF Law, we have a proud record of securing millions in recoveries for our clients. We take cases on contingency and offer free consultations to investors across the US. Call 800-767-8040 to speak with a lawyer today.