March, 2025 | Based in Tulsa, OK
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Essential Information About Matthew Franklin Mitchell
- Full Name: Matthew Franklin Mitchell
- CRD Number: 4908737
- Current Location: Tulsa, OK
- Current Employer: BOK Financial Securities, Inc. (since November 2012)
- Office Address: Multiple locations in Tulsa area including 3045 S. Harvard and 2021 South Lewis
- Registration Status: Currently registered as a broker with FINRA and as an investment adviser representative in Oklahoma
- State Licenses: Licensed as a securities agent in 32 U.S. states and territories
- Experience: In the financial industry since March 2005
- FINRA BrokerCheck: One settled customer dispute and one pending customer complaint
- Previous Employers: Spire Securities, LLC (2010-2012), Morgan Stanley Smith Barney (2009-2010), Citigroup Global Markets (2007-2009), Morgan Stanley & Co. (2007), Morgan Stanley DW Inc. (2005-2007)
- Ability to Recover Losses: Investors may be eligible for FINRA arbitration depending on timing and circumstances
Comprehensive Investigation into Matthew Franklin Mitchell’s Investment Practices
Matthew Franklin Mitchell, a financial advisor currently serving as Senior Vice President and Senior Financial Advisor at BOK Financial Securities, Inc. in Tulsa, Oklahoma, has established himself as an experienced securities professional with registrations spanning 32 states. However, his BrokerCheck report reveals concerning customer complaints centered on recommendations of non-traded Real Estate Investment Trusts (REITs), raising significant questions about his investment practices and adherence to suitability standards.
Our investigation focuses on a pattern of complaints alleging unsuitable investment recommendations, inadequate risk disclosures, and issues related to the liquidity constraints of complex investment products. Of particular concern is Mr. Mitchell’s recommendation of non-traded REITs, which are complex investment vehicles that typically involve high fees, limited liquidity, and risk profiles that may not be appropriate for many retail investors.
The timing of these customer complaints is notable, as they relate to recommendations made in 2016-2017, but only emerged in recent years as investors began experiencing difficulties accessing their funds or realizing expected returns. This delayed recognition of potential misconduct highlights the challenges investors face when evaluating complex products with long investment horizons and limited transparency.
Professional Background and Career Trajectory
Matthew Franklin Mitchell began his career in the securities industry in March 2005 with Morgan Stanley DW Inc., where he obtained his Series 7 General Securities Representative license. He also acquired his Series 66 (Uniform Combined State Law) license in April 2005, qualifying him to act as both a securities agent and an investment adviser representative. Additionally, he holds the Series 31 (Futures Managed Funds) license obtained in May 2005, and more recently added the Securities Industry Essentials (SIE) examination and the Municipal Securities Representative (Series 52) qualification to his credentials.
His employment history shows a series of transitions between major financial firms:
- Morgan Stanley DW Inc. (March 2005 – April 2007)
- Morgan Stanley & Co., Incorporated (April 2007 – August 2007)
- Citigroup Global Markets Inc. (August 2007 – June 2009)
- Morgan Stanley Smith Barney (June 2009 – October 2010)
- Spire Securities, LLC and Spire Wealth Management, LLC (October 2010 – September 2012)
- BOK Financial Securities, Inc. (November 2012 – Present)
This pattern of firm changes, while not unusual in the financial services industry, includes transitions during periods of significant upheaval in the financial markets, including the aftermath of the 2008 financial crisis. Since November 2012, Mr. Mitchell has maintained a seemingly stable position with BOK Financial Securities, where he currently holds the title of Senior Vice President and Senior Financial Advisor.
According to his BrokerCheck report, Mr. Mitchell does not report any other business activities beyond his role with BOK Financial Securities and its parent bank, BOKF, NA. This focus on his primary financial advisory role distinguishes him from many advisors who maintain multiple business lines that could create potential conflicts of interest.
It’s worth noting that Mr. Mitchell’s BrokerCheck report does not indicate any professional designations such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), which would require additional education, examinations, and adherence to ethical codes of conduct specific to those designations.
Customer Complaints and Allegations
The BrokerCheck report for Matthew Franklin Mitchell reveals two significant customer complaints, one settled and one pending, both centered on non-traded REIT recommendations:
Settled Complaint (November 2023): $37,500 Settlement
In November 2023, a customer filed a written complaint alleging that Mr. Mitchell made an unsuitable recommendation in May 2016 related to the purchase and subsequent holding of a non-traded REIT. The customer alleged damages of $60,000, and the matter was settled for $37,500 on November 14, 2023, with no financial contribution from Mr. Mitchell personally.
In his broker statement regarding this complaint, Mr. Mitchell (or his firm) indicated that a “business decision was made to enter into settlement to avoid uncertainty and costs of arbitration.” While such statements are common when settlements are reached, they do not address the merits of the underlying allegations regarding suitability and disclosure.
Pending Complaint (September 2024): $300,000 in Alleged Damages
More recently, on September 4, 2024, another customer filed a written complaint expressing “displeasure with product liquidity” and alleging they were not properly informed about the risks of investing in certain products during the sales process between June 2016 and March 2017. This complaint again involves real estate securities, presumably non-traded REITs.
While the complaint does not specifically state a damages amount, the BrokerCheck report indicates that the alleged compensatory damage amount of $300,000 reflects the customer’s original principal amount invested in the products. This significant investment amount underscores the serious nature of the allegations and the potential financial impact on the investor.
The timing pattern of these complaints is particularly noteworthy. Both involve recommendations made in 2016-2017, but the complaints were not filed until 2023 and 2024. This delayed emergence of complaints is consistent with the nature of non-traded REITs, which typically have long holding periods and liquidity restrictions that may prevent investors from fully understanding the impact of unsuitable recommendations until years after the initial investment.
Understanding Non-Traded REITs and Their Risks
To fully comprehend the significance of the complaints against Mr. Mitchell, it’s essential to understand the complex nature of non-traded REITs and why they require careful suitability analysis and thorough disclosure:
What Are Non-Traded REITs?
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate across various property sectors. Non-traded REITs are a specific category that, unlike their publicly traded counterparts, are not listed on major stock exchanges. While they still register with the SEC, they have fundamental differences that create unique risks:
Key Characteristics and Risks
- Limited Liquidity: Unlike publicly traded REITs that can be bought or sold daily on exchanges, non-traded REITs typically lock up investor capital for extended periods, often 7-10 years or longer. During this period, investors have extremely limited, if any, options to sell their shares.
- High Front-End Fees: Non-traded REITs often carry significant upfront costs, with total fees sometimes reaching 12-15% of the investment amount. These fees substantially reduce the actual amount invested in real estate assets.
- Valuation Challenges: Without market-based pricing, determining the actual value of a non-traded REIT can be difficult. Investors often rely on the sponsor’s valuations, which may not reflect true market conditions.
- Dividend Sustainability Concerns: Non-traded REITs often pay high distributions that may include return of investor principal rather than actual income, potentially masking poor performance.
- Conflicts of Interest: Related-party transactions between the REIT sponsor and the properties being acquired or managed can create significant conflicts that may not align with investor interests.
- Complexity: The structure, terms, and performance metrics of non-traded REITs are often complex and difficult for average investors to fully understand without sophisticated financial knowledge.
Given these characteristics, financial advisors have a heightened responsibility to ensure these products are suitable for their clients and to fully disclose all material risks. The allegations against Mr. Mitchell suggest potential failures in meeting these obligations.
Red Flags for Investors
The complaints against Matthew Franklin Mitchell highlight several warning signs that investors should watch for when working with financial advisors:
1. Inadequate Risk Disclosure
The pending complaint specifically alleges that the customer “was not informed regarding the risks of investing in the products during sales process.” This suggests a potential failure to fulfill the fundamental obligation to fully disclose material risks, particularly for complex products like non-traded REITs.
2. Liquidity Concerns Not Properly Addressed
The September 2024 complaint indicates “displeasure with product liquidity,” suggesting that the liquidity limitations of the recommended investments may not have been adequately explained or were potentially misrepresented. Liquidity constraints are among the most significant features of non-traded REITs and should be prominently disclosed and discussed.
3. Potential Overconcentration
While not explicitly stated in the complaints, the significant investment amounts involved ($60,000 in the settled complaint and $300,000 in the pending complaint) raise questions about whether these investments represented an appropriate percentage of the clients’ overall portfolios. Overconcentration in illiquid, complex investments is a common suitability issue.
4. Potential Misalignment with Investment Objectives
The allegation of unsuitable recommendations suggests that the non-traded REITs may not have aligned with the customers’ investment objectives, risk tolerance, time horizon, or liquidity needs. This misalignment is a fundamental breach of an advisor’s obligation to make appropriate recommendations.
5. Timing of Recommendations
The timeframe of the recommendations (2016-2017) coincided with a period of significant activity in the non-traded REIT market, including regulatory changes and industry consolidation. This raises questions about whether Mr. Mitchell was fully informed about market developments affecting these products and whether he incorporated this information into his recommendations.
Guidance for Potentially Affected Investors
If you’ve worked with Matthew Franklin Mitchell and invested in non-traded REITs or other complex investment products, particularly between 2016 and 2017, consider taking these steps to protect your interests:
1. Review Your Investment Documentation
Carefully examine all paperwork related to your investments, including:
- Account opening documents that outline your investment objectives and risk tolerance
- Offering memoranda or prospectuses for any non-traded REITs
- Account statements showing performance history
- Any written communications with Mr. Mitchell regarding his recommendations
2. Assess Suitability and Disclosures
Consider whether the investments recommended were appropriate given your:
- Investment objectives and financial goals
- Risk tolerance and capacity to absorb losses
- Time horizon and liquidity needs
- Overall investment knowledge and experience
- Total investment portfolio and diversification needs
Also evaluate whether all material risks and features of the investments were adequately disclosed and explained to you before you invested, particularly regarding:
- Liquidity limitations and expected holding periods
- Fee structures and their impact on returns
- Valuation methodologies and transparency
- Distribution policies and sources of distributions
3. Document Your Understanding and Communications
Make detailed notes about:
- Your understanding of the investments at the time they were recommended
- Any representations made by Mr. Mitchell about risks, returns, or liquidity
- Questions you asked and answers you received
- Any concerns you expressed and how they were addressed
4. Understand Time Limitations
Be aware that FINRA arbitration claims typically must be filed within six years of the event giving rise to the claim. If your investments were made in 2016-2017, you may still be within this window, but time is of the essence. Consulting with an attorney promptly is important to preserve your rights.
5. Monitor Investment Performance and Access
For non-traded REITs that you still hold:
- Track distributions and understand their source (income vs. return of capital)
- Monitor any communications from the REIT sponsor about valuations or liquidity events
- Understand redemption options, if any, and their limitations
- Compare actual performance against the initially projected performance
How Our Investment Fraud Attorneys Can Help
Our specialized investment fraud attorneys have extensive experience representing investors who have suffered losses due to unsuitable recommendations of non-traded REITs and other complex investment products. Here’s how we can assist:
Comprehensive Case Evaluation
We provide a thorough, no-cost initial consultation to determine if you have a viable claim for recovery. This evaluation includes:
- Analyzing the suitability of Mr. Mitchell’s recommendations based on your documented investment profile
- Reviewing disclosures provided for non-traded REITs and other complex investments
- Assessing potential violations of FINRA rules or fiduciary duties
- Calculating potential damages from unsuitable investment recommendations
Expert FINRA Arbitration Representation
If you have a viable claim, our attorneys can represent you in the FINRA arbitration process, which is typically the forum for resolving disputes with broker-dealers. Our approach includes:
- Filing a detailed statement of claim documenting all allegations
- Gathering and presenting evidence of unsuitable recommendations or inadequate disclosures
- Deposing relevant witnesses, including potentially Mr. Mitchell himself
- Developing expert testimony regarding industry standards for non-traded REIT recommendations
- Negotiating potential settlements or presenting your case at an arbitration hearing
Contingency Fee Representation
We handle investment fraud cases on a contingency fee basis, meaning you pay legal fees only if we successfully recover compensation for your losses. This arrangement:
- Aligns our interests with yours in pursuing maximum recovery
- Provides access to high-quality legal representation regardless of your current financial situation
- Demonstrates our confidence in our ability to successfully resolve your claim
Comprehensive Recovery Strategy
We pursue all potential avenues for recovery, which may include:
- Claims against BOK Financial Securities for failing to adequately supervise Mr. Mitchell’s recommendations
- Claims based on specific unsuitable investment recommendations
- Claims related to material misrepresentations or omissions regarding non-traded REITs
- Claims related to overconcentration in illiquid investments
The existence of both a settled complaint and a pending complaint involving similar allegations about Mr. Mitchell’s recommendations of non-traded REITs suggests a potential pattern of misconduct that may have affected additional investors. The significant settlement amount ($37,500) in the first complaint indicates that the firm recognized potential merit in the allegations.
If you invested with Matthew Franklin Mitchell, particularly in non-traded REITs or other complex investments, contact our experienced investment fraud attorneys at 800-950-6553 today to schedule your confidential, no-obligation consultation and explore your options for potential recovery.
