Donald Edwin Derieg (CRD # 1365963, Registered Representative, Encino, California) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Derieg consented to the described sanction and to the entry of findings that he served as an elderly customer’s attorney-in-fact pursuant to a power of attorney designation, and became a co-successor trustee and a beneficiary of the customer’s living trust. The findings stated that Derieg’s member firm generally prohibited representatives from accepting fiduciary appointments, except in connection with family. The findings also stated that Derieg completed his firm’s associate annual attestations, in which he failed to disclose that he was named as a co-successor trustee of the elderly customer’s restated trust, that he was a beneficiary of her trust and life insurance policy, or that he was designated as an attorney-in-fact under the power of attorney should the customer become incapacitated. The findings also included that Derieg improperly borrowed money from the customer when his firm’s written procedures prohibited registered representatives from borrowing money from customers, other than family members, and only then with management approval, and Dereig did not notify the firm of the loans or obtain its prior approval. FINRA found that Derieg engaged in unauthorized transactions in the customer’s investment portfolio that were unsuitable in light of the customer’s deteriorating medical condition, her resulting financial situation and need for preservation of principal.

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