Securities Fraud and Mismanagement

Attorney and Counselor at Law

303-300-5022 / 844-253-5858 Toll Free

Did the actions/inactions of my broker fall below the required standard of care?

We’ll tell you, for FREE.

Investors suffering FIP, future income payments, loss may be entitled to recovery including losses from the scheme of Scott Kohn.

We are a firm focused on obtaining recovery for investors, such as those sustaining loss from FIP investments. FINRA, the Financial Industry Regulatory Authority, recently entered into a settlement with the brokerage firm Hornor Townsend & Kent (HTK) concerning the sale of FIPs. Investment News reports that the settlement stems from the supervision of a cohort of Scott Kohn, the notorious Ponzi scam ringleader.

The regulatory settlement states that from July 2013 to March 2016, HTK failed to reasonably supervise its representative’s disclosed, but unapproved, activity involving the sale of FIP securities, including to HTK’s customers. In July 2013, the HTK representative submitted an outside business activity, OBA, request for approval to sell interests in FIP. In his request, the representative described the OBA as “Structured Cash Settlement[s]” that were “investment related,” and involved the purchase of “a fixed income from a source such as a lotery [sic] winner or a retiree.” The representative informed HTK that he anticipated approximately $50,000 a year in commissions and fees from these FIP sales. The representative also informed HTK that he intended to commence the OBA on July 20, 2013, at his HTK branch office.

HTK did not approve but apparently failed to inform the representative. The representative assisted Scott Kohn, who was sentenced to 10 years in prison last year for organizing a Ponzi scheme.

We believe investors who were clients of HTK or believed that HTK had approved the FIP sale should contact us about recovery of their losses. Our firm represents investors and has been doing so for the last 20 years.

Investors have recourse for FIP
 stockbroker fraud and negligence.
FIP Fraud and Negligence often goes unnoticed due to the complexity of securities.