Two financial advisors were charge with allegedly stealing $310,000 from clients of the pair’s investment firm.
Robert Lawrence “Larry” Dahn, 64 of Stuart Florida and formerly associated with Mutual Service Corporation was arrested April 12 on two counts fraudulent transaction of securities, two counts of grand theft of $50,000 or more from a person 65 or older, one count of grand theft of between $50,00 and $100,000 and one count grand theft of more than $100,000.
Donald Richard “Rick” Dahn, 56, of Palm City, Florida and formerly associated with LPL Financial, LLC and Mutual Service Corp. was arrested on the same charges as his brother, plus an extra count of fraudulent transaction of securities.
Donald Dahn recently submitted a Letter of Acceptance, Waiver and Consent to FINRA in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Dahn consented to the described sanction and to the entry of findings that he borrowed a total of $27,100 from public customers without the ability to repay the loans that had been represented to be used for operating expenses for a company Dahn ran with his brother. The findings stated that Dahn failed to disclose the loans to his member firms. Dahn has failed to repay either of the loans, one of which required payment within 90 days. Dahn misappropriated the funds by failing to repay either loan, and by borrowing customer funds without the ability to repay the loans.
Dahns owned an investment firm called Estate Planning & Investment Concepts (EPIC) in Stuart. In November, an 81-year-old woman complained to the State Attorney’s Office that the brothers had persuaded her in 2008 to invest $20,000 through their firm and, because of the “unsettled” investment market, to loan $60,000 to the firm for six months at 6 percent interest.
The woman said she never got her money back.
Apparently, Robert Dahn pleaded guilty in June 2007 to a felony charge of illegally diverting about $744,000 in insurance funds. He was sentenced to five years probation, required to repay the diverted money and had his Florida insurance license permanently revoked.
According to newspaper articles, the State Attorney’s Office is concerned that there are more victims.
If your financial advisor stole your funds, contact the Law Offices of Place & Hanley for a no cost initial consultation at: