According to FINRA, Patrick Stanton Matlock was barred from association with any FINRA member in all capacities for misrepresenting material facts on a loan application to obtain an Economic Injury Disaster Loan (EIDL), engaging in an undisclosed outside business activity, and failing to produce documents requested by FINRA. This decision became final through an Office of Hearing Officers decision.

Matlock falsely represented that he sought a loan for a sole proprietorship in New Jersey he had established in 2013, that the proprietorship had generated gross revenue of $120,000 in a 12-month period ending January 31, 2020, and that it had one employee. However, the proprietorship did not exist at the time of the loan application. Matlock reaffirmed the truth and accuracy of his representations when he executed the loan agreement necessary for a $59,000 EIDL loan.

Additionally, Matlock falsely stated in the loan agreement that he would use the proceeds exclusively to alleviate economic injury caused by the COVID-19 pandemic. But Matlock did not use the loan proceeds for his purported business. Instead, he used the proceeds to purchase shares of common stock in an energy company.

Matlock also engaged in an outside business activity without providing prior written notice to his member firm. After applying for the EIDL loan, Matlock formed a limited liability company in the State of New Jersey to perform remodeling services for profit. Matlock was the sole member and manager of the company and its registered agent.

Furthermore, Matlock failed to produce information and documents requested by FINRA in connection with its investigation into whether the company he had referred to in his EIDL loan application had any revenue in the year specified in his application and whether he had received compensation in connection with his undisclosed outside business activity. Matlock made a partial but incomplete production of requested bank statements that were material to FINRA's investigation.

This case involves multiple serious violations, including fraud in obtaining government funds intended to help businesses affected by the pandemic, misusing those funds for personal investments, and failing to cooperate with FINRA's investigation. The bar sanction is appropriate given the intentional nature of the misconduct and the abuse of a government relief program.