Articles Tagged with horter investment management

AdobeStock_41845221-300x212If you lost money because of a recommendation by Horter Investment Management, please call our Chicago-based law firm today. We are securities attorneys who help clients bring claims against firms like Horter Investment Management. Horter sold shares of LJMIX as part of its “sleeves” investment philosophy. Notwithstanding the name of the fund, LJMIX was not focused on capital preservation and left investors exposed to an unacceptably high risk of catastrophic losses. This occurred on February 5th, 2018, when the S&P 500 fell 4.6% and by the close of trading on February 6th, LJMIX had lost 88%. It was an inaptly named Fund, as it actually pursued the opposite of a capital preservations and growth strategy, and was implementing an options trading strategy with unlimited downside (in other words, no preservation) and limited upside (no growth). A professional investment advisor like Horter must understand the options strategy employed by a fund like LJMIX and not simply relied on the name of the fund when it selected it as part of the firm’s “sleeves” strategy.

Hundreds of clients of the Cincinnati, Ohio-based Registered Investment Advisor (RIA) had LJMIX in their portfolios. This investment was unsuitable for many clients due to its speculative nature, which included the risk of total loss. As a fiduciary investment advisor, Horter had a legal obligation to understand LJMIX prior to selecting it as part of its “sleeves” strategy.

This is not the first time Horter has been in hot water in connection with a mutual fund. According to an Order Instituting an Administrative Cease and Desist against Horter brought by the Securities and Exchange Commission (SEC) last year, Horter Investment Management was accused of making misstatements to clients concerning F-Squared Investments, Inc. (F-Squared), which materially inflated performance track record for its AlphaSector strategy. These alleged misstatements were made between January 2012 and October 2013, and resulted in a $250,000 fine to Horter.

Stoltmann Law Offices is investigating Richard Clatfelter, a former investment advisor with Horter Investment Management in Chandler and Mesa, Arizona. Mr. Clatfelter, along with Chad Deucher and Marquis Properties, allegedly ran a ponzi scheme. In December 2016, the Securities and Exchange Commission (SEC) barred Clatfelter from the securities industry after a judgment was entered against him in the District of Utah. Clatfelter and Deucher operated Marquis Properties, which allegedly rehabilitated real properties and make a profit. They marketed Marquis as being safe and low risk. In reality, the properties were not owned by Marquis, and money was used to pay for personal expenses or to pay back purported “returns” to other investors, in a ponzi scheme style. The SEC claimed that over $28 million was taken from 250 investors. The scheme began in 2010.

According to Mr. Clatfelter’s Investment Adviser Public Disclosure report, he was registered with Redhawk Wealth Advisors in Chandler, Arizona from October 2008 until November 2009, Horter Investment Management in Chandler from December 2009 until July 2011 and Horter Investment Management in Mesa, Arizona from October 2011 until December 2011. He has one regulatory event against him, one civil event against him and two judgment/liens. If you or anyone you know suffered losses with Mr. Clatfelter, please call our securities law offices today to speak to one of our attorneys. The call is free with no obligation. We take cases on a contingency fee basis, so we do not get paid unless you recover money.

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