Horter Investment Management Investigation
March 2025 -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. According to a recent SEC proceeding in 2024 Horter has about $252 million in assets under management.
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 the firm website, Horter Investment recommends and utilizes TD Ameritrade, AXOS Advisor Services, Charles Schwab & Co., and Nationwide Advisory Services for custody of client assets.
Horter Branch Offices/ Affiliates
- Absolute Wealth Management Group
- WLEM Financial Advisors
- Wealth Max Financial Group
- Tidmore Financial
- Stephen Dissette & Associates
- Snyder Financial
- Safe Harbor Financial
- Roadmap Financial Consulting
- Perlin Retirement Solutions
- Marra Financial Group
- Lightfield Wealth Management
- Lamb Capital
- Jensen Financial Group
- Horter Financial Strategies
- Horter Asset Management
- Geitgey Financial Services
- Geff Lewis and Associates
- Gatlin Financial Services
- Financial Freedom Partners
- Defense First Financial
- Croix River Wealth Mangement
- Celtic Guard Financial Planning
- Applied FInancial Services
Horter Investment Management and Drew Horter Sanctioned in October 2024
In October the SEC censured Horter Investment Management and fined the firm. The SEC found that Horter failed to reasonably supervise Kimm C. Hannan who solicited $728,000 from Horter Investment clients and misappropriated funds. Hannan, who used the money to pay personal expenses, including gambling debts, alimony, personal credit cards and repay other investors. The SEC found that Horter failed to establish supervisory procedures and policies and failed to follow up on red flags.
These failures constitute violations within sections 203 and 206 of the Advisers Act and the rules thereunder.
The SEC order imposed a $100,000 civil penalty on the firm and fine of $50,000 was imposed on Drew Horter who was also suspended from supervisory roles for six months.
Furthermore, the SEC found that more than half of the investment advisors hired since November 2014 were identified as being moderate or high risk individuals since they either had previous disclosure or had no prior investment advisory experience. In March 2015 a consultant warned Horter Investment that “higher risk IAR’s (those with previous disclosures and without IAR experience) require a program of closer supervision, particularly during their first years with Horter Investment. Horter Investment and Drew Horter did not adopt a heightened supervision agreement until November 2017, per the SEC order.
The firm’s founder, Drew K. Horter, had his Ohio certification with the Certified Financial Planner Board (CFP) revoked 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.
H2: What is an Investment Adviser?
According to Investor.gov:“An investment adviser is a
- firm or person
- that, for compensation, engages
- in the business of providing investment advice to others about the value of or about investing in securities – stocks, bonds, mutual funds, exchange traded funds (ETFs), and certain other investment products
and/or
- in issuing reports or analyses regarding securities, as part of a regular business.
Advisers typically provide ongoing advice about buying, selling and/or holding investments and will monitor the performance of your investments and their alignment with your overall investment objectives. The fee that you pay for this advice is typically based on the value of all of the assets held in your account with the adviser. You may pay other fees and costs related to servicing your account and the investments that you buy, sell or hold. Advisers also may give advice about market trends or asset allocation or offer financial planning services.”
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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