March, 2025 | Based in Owensboro, KY
If you’ve been affected by potential investment fraud, don’t hesitate to reach out for help. Contact us today at 800-950-6553 or complete our online form to schedule your free, confidential consultation with a securities attorney who can evaluate your case.
Key Information About Daniel Ray Deno
- Full Name: Daniel Ray Deno
- CRD Number: 6674802
- Last Known Location: Owensboro, KY
- Registration Status: Not currently registered (previously with LPL Financial until December 2024)
- Previous Employers:
- LPL Financial LLC (October 2022 – December 2024)
- Fifth Third Securities, Inc. (September 2020 – October 2022)
- LPL Financial LLC (May 2018 – May 2019)
- FINRA Disciplinary Action: Permanently barred from the securities industry (January 2025)
- Criminal Charges: Pending felony charges for fraud and theft
- License Status: Previously licensed in Kentucky
- Industry Experience: Entered the securities industry in 2018
- Legal Developments: Pretrial conference scheduled for January 29, 2025
Serious Allegations: A Financial Advisor Facing Criminal Charges and FINRA Bar
Our securities fraud attorneys are investigating allegations against former financial advisor Daniel Ray Deno (CRD# 6674802), who was recently barred from the securities industry by FINRA and is currently facing serious criminal charges. Deno, who was most recently affiliated with LPL Financial LLC and German American Bancorp in Owensboro, Kentucky, has been accused of felony fraud and theft.
According to FINRA records and court documents, Deno was charged with felony fraud and theft in Perry Circuit Court in Tell City, Indiana (Case #62C01-2411-F6-000964) on November 19, 2024. Shortly after these charges were filed, FINRA launched its own investigation into the allegations. When FINRA requested that Deno provide documents and appear for testimony, he refused to cooperate, leading to his permanent bar from the securities industry on January 28, 2025.
The serious nature of these developments raises significant concerns for investors who may have entrusted their assets to Deno during his tenure at LPL Financial, Fifth Third Securities, or any other financial institution with which he was affiliated. If you were a client of Daniel Ray Deno, understanding your legal options is crucial to potentially recovering any losses you may have suffered.
Daniel Ray Deno’s Professional Background
Daniel Ray Deno entered the securities industry in 2018, having a relatively brief career compared to many financial advisors. According to his FINRA BrokerCheck report, his registration history includes:
- LPL Financial LLC (October 2022 – December 2024)
- Fifth Third Securities, Inc. (September 2020 – October 2022)
- LPL Financial LLC (May 2018 – May 2019)
During his most recent employment, Deno worked as a Financial Consultant for German American Bancorp while registered through LPL Financial LLC. Prior to that, he was a Personal Banker at Fifth Third Bank while registered with Fifth Third Securities.
Deno had passed several securities industry examinations, including:
- Securities Industry Essentials (SIE) Examination
- General Securities Representative Examination (Series 7)
- Uniform Combined State Law Examination (Series 66)
Despite these qualifications, the allegations against Deno suggest potentially serious misconduct that may have harmed investors.
The Regulatory Action: Permanent Bar by FINRA
On January 28, 2025, FINRA issued a permanent bar against Daniel Ray Deno from associating with any FINRA member firm in any capacity. This severe disciplinary action came after Deno refused to provide documents and information requested by FINRA and declined to appear for on-the-record testimony as part of FINRA’s investigation into allegations that he had engaged in felony fraud and theft.
The bar was instituted through an Acceptance, Waiver & Consent (AWC) agreement, in which Deno consented to the sanction without admitting or denying the findings. This type of agreement is common in FINRA disciplinary proceedings and allows for a resolution without a formal hearing.
A permanent bar is the most severe sanction FINRA can impose on a registered representative and effectively ends an individual’s career in the regulated securities industry. This action prevents Deno from acting as a broker or investment adviser with any FINRA member firm in the future.
Criminal Proceedings: Pending Felony Charges
According to his BrokerCheck report, Deno is currently facing serious criminal charges in Perry Circuit Court in Tell City, Indiana. Filed on November 19, 2024, the charges include:
- Felony Theft (1 count)
- Felony Fraud (1 count)
Deno has pleaded not guilty to both charges, and a pretrial conference has been scheduled for January 29, 2025. While these charges are pending and have not been adjudicated, they raise serious concerns about potential misconduct involving client funds.
The nature of these criminal charges aligns with typical securities fraud scenarios, which often involve misappropriation of client funds, unauthorized trading, or other deceptive practices. However, specific details about the alleged victims and the nature of the conduct have not been publicly disclosed at this time.
Warning Signs of Fraud and Misconduct
The allegations against Daniel Ray Deno highlight several red flags that investors should be aware of when working with financial advisors. These warning signs can help identify potential fraud or misconduct before significant losses occur:
Rapid Movement Between Firms
Deno’s employment history shows multiple moves between firms within a short period. While changing employers is not uncommon in the financial industry, frequent moves can sometimes indicate underlying issues, including regulatory concerns or customer complaints that prompt a broker to change firms.
Limited Experience but Access to Client Funds
Deno entered the securities industry in 2018, meaning he had relatively limited experience (about 6-7 years) before facing these serious allegations. Newer advisors sometimes lack the depth of knowledge and experience to handle complex financial matters, yet they often have the same access to client funds as more seasoned professionals.
Dual Roles at Banking and Investment Entities
Deno worked as both a Financial Consultant for German American Bancorp and as a registered representative through LPL Financial. This dual role, while not uncommon, can sometimes create confusion for clients about which entity is responsible for their investments and what protections apply to different types of accounts.
Refusal to Cooperate with Regulators
Deno’s refusal to cooperate with FINRA’s investigation is particularly concerning. When financial professionals decline to provide requested information or testimony to regulators, it often suggests they may be attempting to conceal misconduct.
Legal Framework: Understanding Securities Laws and Regulations
Financial advisors like Daniel Ray Deno are subject to numerous rules and regulations designed to protect investors. Understanding these rules can help investors recognize when their rights may have been violated:
FINRA Rule 2010: Standards of Commercial Honor
This fundamental rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. It serves as a catchall provision that prohibits unethical conduct even if that conduct isn’t explicitly addressed by other rules.
FINRA Rule 2150: Improper Use of Customers’ Securities or Funds
This rule prohibits brokers from making improper use of customers’ securities or funds. Misappropriation of client assets—taking money or securities for personal use—is a direct violation of this rule.
FINRA Rule 8210: Provision of Information and Testimony
This rule requires registered representatives to provide information and testimony when requested by FINRA. Deno’s refusal to comply with this rule led to his permanent bar from the industry.
SEC Rule 10b-5: Anti-Fraud Provisions
This Securities and Exchange Commission rule prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security. It’s one of the most commonly invoked rules in securities fraud cases.
State Securities Laws (“Blue Sky Laws”)
In addition to federal regulations, Kentucky and Indiana state securities laws provide additional protections for investors and penalties for misconduct. These laws often allow for state-level enforcement actions separate from federal cases.
Potential Recovery Options for Affected Investors
If you were a client of Daniel Ray Deno and suspect you may have been a victim of fraud or misconduct, several avenues for potential recovery may be available:
FINRA Arbitration
Investors who have disputes with their brokers typically pursue claims through FINRA’s arbitration process rather than through the courts. FINRA arbitration is generally faster and less formal than traditional litigation, with most cases concluding within 12-16 months.
Key considerations for FINRA arbitration include:
- Statute of Limitations: Claims must typically be filed within six years of the event giving rise to the claim.
- Eligibility: To pursue FINRA arbitration, the dispute must involve a FINRA member firm or associated person.
- Recovery Options: Arbitrators can award damages, including compensatory damages, interest, and in some cases, punitive damages.
Claims Against the Brokerage Firm
Brokerage firms have a legal obligation to supervise their registered representatives. If LPL Financial or Fifth Third Securities failed to properly supervise Deno and that failure allowed for client harm, the firms may be liable under a theory of “failure to supervise.”
Evidence of inadequate supervision might include:
- Failure to conduct proper background checks
- Inadequate systems to monitor advisor activities
- Ignoring red flags about potential misconduct
- Insufficient training or oversight
Complaints to Regulatory Authorities
Filing complaints with regulatory authorities such as FINRA, the SEC, or state securities regulators can trigger investigations that might lead to restitution orders. While this approach doesn’t guarantee recovery, it can create additional pressure on firms to resolve legitimate claims.
Civil Litigation
In some cases, particularly those involving fraud, investors may have the option to pursue claims in civil court. This approach may be appropriate when the allegations include violations of state or federal laws that provide for private rights of action.
How Our Investment Fraud Attorneys Can Help
Our securities attorneys specialize in representing investors who have suffered losses due to broker misconduct. With extensive experience in FINRA arbitration and securities litigation, we offer:
Comprehensive Case Evaluation
We conduct a thorough analysis of your investment accounts and all communications with your advisor to identify potential misconduct and determine the most effective strategy for pursuing your claim.
Damage Assessment
Our team works with financial experts to calculate the full extent of your losses, including actual losses, opportunity costs, interest, and where appropriate, punitive damages.
FINRA Arbitration Representation
We guide clients through every step of the FINRA arbitration process, from filing the initial statement of claim to presenting your case before arbitrators.
Contingency Fee Arrangement
We handle investment fraud cases on a contingency fee basis, meaning you pay no legal fees unless we recover money for you. Our interests are aligned with yours—we only succeed when you do.
Industry Knowledge and Experience
Our attorneys have deep knowledge of the securities industry, applicable regulations, and the most effective strategies for holding financial advisors and their firms accountable for misconduct.
Red Flags for Investors: Protecting Yourself from Fraudulent Advisors
The allegations against Daniel Ray Deno serve as an important reminder for investors to remain vigilant. Consider these protective measures:
Verify Credentials
Always verify a financial advisor’s credentials and registration status through FINRA BrokerCheck (brokercheck.finra.org) or the SEC’s Investment Adviser Public Disclosure website (adviserinfo.sec.gov).
Monitor Account Statements
Regularly review your account statements and trade confirmations for unauthorized transactions, unexpected fees, or other irregularities.
Question Unusual Recommendations
Be wary of investment recommendations that seem too good to be true or don’t align with your stated investment objectives and risk tolerance.
Maintain Documentation
Keep copies of all communications with your financial advisor, including emails, letters, and notes from phone conversations or meetings.
Be Cautious with Cash Transfers
Never make checks payable directly to your financial advisor or transfer funds to personal accounts. Legitimate investments should be made through the brokerage firm or custodian.
Taking Action to Protect Your Financial Future
The allegations against Daniel Ray Deno highlight the importance of investor vigilance and the potential consequences of entrusting assets to financial professionals who may not act in their clients’ best interests. While Deno is presumed innocent of the criminal charges until proven guilty, the FINRA bar and pending felony charges raise serious concerns about his conduct as a financial advisor.
If you were a client of Daniel Ray Deno during his time at LPL Financial, Fifth Third Securities, or through German American Bancorp, you may have legal options for recovering potential losses. The time to pursue these claims is limited by various statutes of limitations, so prompt action is crucial.
Our securities fraud attorneys stand ready to help you understand your rights and pursue appropriate remedies. With decades of combined experience representing investors in similar situations, we have the knowledge and resources to advocate effectively for your financial interests.
Don’t wait to protect your financial future. Reach out today at 800-950-6553 or through our secure online form to schedule a free, confidential consultation with an experienced investment fraud attorney.
