According to FINRA, Sevaag Matossian was barred from association with any FINRA member in all capacities on March 11, 2022, for converting $2,639.64 of his employer's funds.

While employed by his member firm's affiliate bank, Matossian and his wife used personal bank credit cards in his name to make purchases at retailers and restaurants. Despite authorizing these transactions, Matossian falsely reported the charges as fraudulent to the bank. He claimed that certain cards were lost or not yet received and that other charges were not made by him or his wife. Through these false fraud claims, Matossian obtained $2,639.64 that he was not entitled to receive.

Although the dollar amount may seem relatively small, this conduct demonstrates dishonesty and a willingness to defraud his employer for personal gain. FINRA and member firms have zero tolerance for dishonest conduct because integrity is fundamental to maintaining trust in the financial services industry.

Conversion involves taking someone else's property for unauthorized use. When employees file false fraud claims to avoid paying legitimate debts, they are essentially stealing from their employer and undermining the systems designed to protect customers from actual fraud.

This case illustrates that even seemingly minor acts of dishonesty can result in career-ending sanctions in the securities industry. The securities industry maintains high ethical standards because registered representatives are entrusted with customer assets and confidential information.

For investors, this case underscores why FINRA maintains strict ethical requirements for registered representatives. Even small-scale dishonest conduct raises serious questions about an individual's trustworthiness to handle customer funds and provide honest advice. The bar imposed in this case protects investors from someone who demonstrated willingness to engage in fraudulent conduct for personal benefit.