Horter Investment Management Investigation
October 2023 -Cincinnati, Ohio
We are investigating Cincinnati-based registered investment adviser Horter Investment Management, LLC. (“Horter Investment“).
Horter Investment Management is an SEC registered investment adviser with its principal place of business in Cincinnati, Ohio. It was founded by Drew Horter in 1991. The company reports having over $385 million in assets under management, the vast majority of which are managed on a discretionary basis. As of 12/31/2022 Horter was actively managing $224,039,000 of client assets on a discretionary basis and another $13,448,000 on a non discretionary basis.
Horter utilizes the following proprietary funds, according to their 3/20/23 Part 2A OF Form ADV:
- TFA Tactical Income Fund (I Shares – TFAZX/ A Shares TFALX)
- Tactical Growth Allocation Fund (I Shares- TFAFX/ A Shares – TFAEX)
- TFA Quantitative Fund (I Shares- TFAQX/ A Shares)
- TFA AlphaGen Growth Fund (I Shares- TFAGX)
According to regulatory filings, Horter Investment recommends and utilizes TD Ameritrade, AXOS Advisor Services and Nationwide Advisory Services for custody of client assets.
Horter Investment Management and Founder Drew Horter Sanctioned in March 2023
In March 2023 the SEC censured Horter Investment Management and fined the firm $250,000. Drew K. Horter was collaterally barred with the right to reapply after two years and fined $125,000. The SEC found that Horter and Drew Horter failed to reasonably supervise Kimm C. Hannan who solicited $728,000 from Horter Investment clients and misappropriated funds from Horter Investment. Hannan, who had previously been associated with LPL Financial was convicted of Ohio state securities violations and sentenced to 20 years of incarceration.
Prior regulatory sanctions include the following:
In December 2017 the US Securities and Exchange Commission (SEC) entered an Order and imposed sanctions against Horter, including a censure, and disgorgement of $482,595, prejudgement interest of $46,209 and a civil penalty of $250,000.
According to the SEC Order, Horter made misstatements to certain advisory clients concerning F-Squared Investments, Inc. , materially inflated, and hypothetical and back-tested, performance track record for its AlphaSector strategy between January 2012-November 2014. The SEC found that Horter violated securities laws by publishing, circulating and distributing advertisements that contained untrue statements of material fact.
F-Squared Investments was an investment adviser headquartered in Wellesley, MA, registered with the SEC until January 2016. In December 2014, the SEC settled a fraud action against F-Squared in which the company admitted to making material false claims in connection with their AlphaSector strategy.
The firm’s founder, Drew K. Horter, had his certification with the Certified Financial Planner Board (CFP) in 2/2019 after he failed to respond to the CFP Board’s complaint related to an SEC finding about Horter Investment Management.
If you have questions about the way your account has been handled at Horter Investment Management, contact us for a no charge consultation to discuss your options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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