FINRA Bars Richard Allan Danz, St. Marys, Pennsylvania, from Securities Industry Following Misappropriation of Client Funds

Richard Allan Danz (CRD #5502230, Registered Representative, St. Marys, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which he permanently was barred from the securities industry. See FINRA Case #2012033132501. Danz was registered with H.D. Vest Investment Services (CRD# 13686) in St. Marys, Pennsylvania from April 2008 until his termination in July 2012. Danz also worked locally as a tax preparer, and is now facing criminal charges for his misuse of investor funds. Pursuant to FINRA Rules, H.D. Vest Investment Services was responsible for properly supervising Danz’s activities during the time Danz was registered with the firm. Therefore, H.D. Vest Investment Services may be liable for investment or other losses suffered by Danz’s customers. H.D. Vest Investment Services also is known as H.D. Vest Investment Securities, Inc.

Without admitting or denying the findings, Danz consented to the described sanction and to the entry of findings that he became the treasurer of the local Humane Society, a charitable organization that was a customer of his member firm, and failed to provide written notice to the firm of his position and to disclose his activities with the organization. Danz participated in the Humane Society’s operations, directed its financial affairs, and had sole control of and access to its financial records, brokerage account and bank account. Danz placed funds of the Humane Society’s brokerage account in a bond fund. Danz improperly used and converted the Humane Society’s funds in separate ways for personal use, including selling securities in the brokerage account, transferring the proceeds to its bank account and writing checks on its bank account totaling $260,308 payable to another entity that he controlled, using the funds to purchase CD away from his firm for $105,000, and withdrawing funds from the CD for himself or for another entity that he controlled, for $26,239.81; and, finally, opening a line of credit away from his firm under the name of the Humane Society without its knowledge or approval, and making charges for $2,529.58. Thus, Danz willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

In addition, an elderly customer and another customer delivered funds in the form of checks totaling $21,000 to Danz based on his representation that he would use their funds to purchase securities for them in their separate accounts at the firm. Contrary to Danz’s representations, the funds were not used to purchase securities for the customers and were not deposited into their accounts at the firm. Instead, Danz deposited the funds into the bank account of an entity he controlled and converted the funds for his personal use, thereby, willfully violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

If you were a client of Richard Allan Danz or H.D. Vest Investment Services, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our “contact form.”