INVESTOR DEFENSE LAW BLOG

Posts in Category: “Hornor, Townsend & Kent”

John M. Saad Permanently Barred After Falsifying Expense Reports

Posted on Sep 13th, 2015

John Michael Elias Saad of Atlanta, Georgia was recently barred “from acting as a broker or otherwise associating with firms that sell securities to the public.”

The condemning report comes from the Financial Industry Regulatory Authority, or FINRA, as well as from the sanctions imposed by the National Adjudicatory Council following a SEC decision.

As a registered representative of Hornor, Townsend & Kent, Saad misappropriated $1,144 by “intentionally falsifying receipts” from Honror’s parent company, Penn Mutual Life Insurance Company. In addition, Saad submitted a fraudulent expense report and accepted reimbursement to which he was not entitled.


Financial Advisor In Lansdale, Pennsylvania Borrows Investor Money

Posted on Jun 10th, 2015

Robert Forest Held Jr., a financial advisor formerly employed with Hornor Townsend & Kent Inc. (“HTK”), has been suspended and fined for borrowing funds from a firm customer who was not an immediate family member. He violated FINRA rules and firm policies by failing to get prior approval from HTK.

FINRA prohibits financial advisors from borrowing investor funds, unless their firm has written procedures allowing it. Financial advisors are resources for investors to help them manage and earn money. Therefore, financial advisors are considered experts in the field, and are relied upon by others.



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What does a Receivership Do? An Investor’s Guide to How Receivers Recover Investment Losses While (Hopefully) Avoiding Bankruptcy

Posted on Oct 4th, 2016

If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.

These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.

We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.


Three Signs You Should Sue Your Financial Advisor For Negligence Or Malpractice

Posted on Dec 24th, 2015

Some investor claims are easy to see, such as when money is simply missing from an account or a financial advisor has been arrested for securities fraud. In other cases, a financial advisor has been negligent. The financial advisor did not commit fraud, but he did make mistakes that caused investment losses. These cases are more difficult for an investor to spot. Here are the three things we see in most of the investor claims we file against financial advisors for malpractice or negligence.


The One Reason Why Variable Annuities Are Almost Always A Bad Idea

Posted on Jun 23rd, 2015

Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!

Unfortunately, commissions are just about the only thing that is simple about variable annuities.

The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities:


Can I “Sue” My Financial Advisor?

Posted on May 6th, 2015

If your financial advisor has caused investment losses, you may want to sue your financial advisor. For better or for worse, you may instead be forced out of court and into a FINRA arbitration. This post explains why securities litigation frequently ends up in FINRA arbitration, and what you can expect from the FINRA arbitration process.


How to Report Investment Fraud

Posted on May 5th, 2015

Without an investment fraud lawyer, you can easily spend hour filing investment fraud reports with federal, state, and local agencies. While doing so is often a good idea, the payout can be low.


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