PHOENIX – A longtime Mesa financial adviser has been punished for spending a client’s money on personal expenses, regulators announced last week.
The Arizona Corporation Commission (ACC) ordered Dan E. Droeg to pay over $1.1 million in restitution plus a $150,000 administrative penalty for defrauding a client from Tempe.
The ACC’s duties include regulating utility companies and securities market activity.
In addition, the commission revoked Droeg’s investment adviser license and salesman registration. He’d been registered in the state as a salesman since 1987 and licensed as an adviser since 2007, according to case records.
How did Mesa financial adviser defraud client?
Droeg was named trustee of the victim’s charitable remainder trust after he told the company he worked for he was the client’s nephew, which wasn’t true, according to the ACC.
That fraudulent action gave him access to liquidate investments.
He also created fake account statements that indicated the money had been invested and was growing when he’d actually transferred it to his personal account, per the ACC.
