• March 16, 2022
• United Planners Services of America

Dan Droeg (CRD#: 1509210) is a previously registered Broker and previously registered Investment Advisor.

Broker’s Background

He entered the securities industry in 1986 and previously worked for United Planners’ Financial Services of America, A Limited Partner; Sagepoint Financial, Inc.; H. Beck, Inc.; Woodbury Financial Services, Inc.; American General Securities, Inc.; SunAmerica Securities, inc.; Advantage Capital Corporation; and Anchor National Financial Services.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2022, FINRA sanctioned Dan Droeg, barring him from all capacities indefinitely beginning March 3, 2022. The FINRA sanction states, “Without admitting or denying the findings, Droeg consented to the sanction and to the entry of findings that he converted assets of a trust by using his authority as trustee to surrender a variable annuity owned by the trust and then transferring over $878,000 from the trust’s bank account to his own bank accounts, a portion of which he distributed to the trust’s beneficiaries and withdrew the remainder for personal use. The findings stated that the trust was created by its two beneficiaries, a senior, married couple with no familial relationship to Droeg. In accordance with the trust documents, Droeg had authority to invest the trust’s assets and to establish and control bank accounts in the trust’s name. Droeg initially invested the trust’s assets in a variable annuity.”

For a copy of the FINRA sanction, click here.

In addition, Dan Droeg has been the subject of two customer complaints and one employment termination, related to the above conduct. The disclosures state as follows:

• September 2021 — “United Planners’ prohibits financial professionals from acting in the capacity as a trustee for clients who are not immediate family members. Mr. Droeg did not disclose he was named the trustee for a client’s account prior to becoming affiliated with United Planners and continued to act as trustee after his affiliation. Additionally, United Planners prohibits financial professionals from creating and distributing fictitious statements to clients.” Dan Droeg was discharged by United Planners’ Financial Services of America, A Limited Partnership.
• November 2016 — “Customer alleged that from 2012-16 Registered Representative recommended unsuitably over-concentrated and illiquid investments in numerous variable annuities for several Profit-Sharing Plans and incorrectly reported the values and performance of the securities resulting in excess distributions, unnecessary fees and poor performance. Date of Activity – 07/24/2012-11/18/2016.” The customer dispute was settled for $75,000.
• January 2005 — “ALLEGES UNSUITABLE RECOMMENDATIONS BASED ON RISK TOLERANCE AND AGE OF CLIENT.” The customer dispute was settled for $18,043.79.

For a copy of Dan Droeg’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

FINRA Rule 2150 specifically addresses theft and conversion in a customer account, stating “no member or person associated with a member shall make improper use of a customer’s securities or funds.”  This rule includes any “guarantee” that brokers make to customers in relation to losses incurred in a brokerage account.

In addition, FINRA Rule 3240 strictly prohibits a financial advisor from borrowing money from a client absent from unique circumstances, such as a familial relationship between the Financial Advisor and the client.  There is also an exception if the client is a financial institution regularly engaged in the business of lending.  The reason for this prohibition is clear—borrowing money from clients creates an immediate conflict of interest and can potentially lead to theft or conversion of client assets.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.