Phoenix, Ariz. - The Arizona Corporation Commission ordered respondent Dan E. Droeg of Mesa to pay $1,105,187 in restitution and a $150,000 administrative penalty after he defrauded a securities client by spending the client’s money for his personal benefit. The Commission also revoked Mr. Droeg’s investment adviser representative license and salesman registration due to this conduct. 

The Commission found Mr. Droeg lied to his employer about being a client’s nephew so he could be named trustee of this client’s charitable remainder trust. This misrepresentation gave Mr. Droeg account access in order to surrender an annuity and liquidate other investments. To perpetuate his fraud scheme, Mr. Droeg created fake account statements, which indicated the money was invested and growing, when it actually had been withdrawn and dispersed to Droeg’s personal account.

All documents relating to the administrative case can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number S-21269-A-23-0247. 

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