According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Daniel Madasz (Madasz), previously associated with Multi-financial Securities Corporation, has at least one disclosable event. These events include one regulatory, alleging that Madasz recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 02, 2024.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Daniel Stephen Madasz (‘Respondent’ or ‘Madasz’). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the ‘Offer’) which the Commission has determined to accept. On the basis of this Order and Respondent’s Offer, the Commission finds that: On December 2, 2020, Madasz pleaded guilty to two counts of securities fraud and one count of acting as an unregistered investment adviser representative and, on February 19, 2021, he was sentenced to twelve months in prison and two years supervised release, and he was ordered to pay $550,000 in restitution. State of Kansas v. Daniel Stephen Madasz, Case No. 2019-CR-2440, December 2, 2020, Tenth Judicial District, District Court of Johnson County, Kansas. Facts presented to the Court at the plea hearing, which were also contained in a Statement of Facts contained in the State’s Response to Defendant’s Motion for Downward Departure and Sentencing Memorandum (‘Sentencing Memorandum’) asserted that during September and October 2014, Madasz transacted business as an investment adviser representative in Kansas without being registered as such in Kansas, as required by Kansas law. The Sentencing Memorandum contained additional facts alleging that while Madasz acted as an investment adviser representative, he recommended that two advisory clients, who resided in Kansas, purchase securities issued by Skytec Security Services LLC (‘Skytec’), an Arizona company which installed security systems, but Madasz did not inform them that Skytec had hired him to find investors for it. One client invested in a two-year $200,000, 10%, promissory note issued by Skytec, and the second investor invested in a $350,000 subscription agreement with Skytec. The Sentencing Memorandum also asserted that Madasz failed to disclose amounts Skytec owed to other investors. According to the Sentencing Memorandum, owners of Skytec embezzled the entire amount invested by the two clients. The Sentencing Memorandum asserted that the clients’ investments were securities and that Madasz’s omissions were material and therefore constituted fraud.
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