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H.D. Vest Broker Richard Danz Barred by FINRA for Misappropriation

H.D. Vest Broker Richard Danz Barred by FINRA for Misappropriation

H.D. Vest Broker Richard Danz Barred by FINRA for Misappropriation 150 150 Rex Securities Law

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

 
October 2013
 
Richard Allan Danz (CRD #5502230, Registered Representative, St. Marys, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Danz consented to the described sanction and to the entry of findings that hebecame the treasurer of a 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.
The findings stated that as treasurer, Danz participated in the organization’s operations, directed its financial affairs, and had sole control of and access to its financial records, brokerage account and bank account. The findings also stated that the funds of the organization’s brokerage account at Danz’ firm were placed in a bond fund. Danz improperly used and converted the customer’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 a 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. Danz communicated with his firm by  telephone and email in furtherance of the scheme.
Danz willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The findings also included that 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. FINRA found that Danz failed to respond to FINRA requests for information and documents in furtherance of its investigation into this matter. (FINRA Case #2012033132501 )
 
According to FINRA records, Danz was registered with H.D. Vest from 04/2008-07/2012.

For the complete report visit the FINRA disciplinary website and follow the October 2013 link.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

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