Published On: August 14, 2015

The U.S. Securities and Exchange Commission (SEC) barred John T. Thornes, formerly the owner of Thornes & Associates in Redlands, California, from associating with financial professionals as part of an administrative order. He is accused of misappropriating $4.4 million from two brokerage accounts, The Shultz Trust Account and the Harbison Scholarship Trust account, on which he was the investment advisor to the trustee, and his mother, Doreen Thornes. Doreen Thornes set up the Harbison Trust to provide academic merit-based scholarships to up to 15 high school graduates from the money from the will of a family friend. She then asked John Thornes to manage it, and Thornes tried to take bigger risks with the fund, using margin loans and asking his mother to sign blank checks when more money was needed.

The Schulz Trust was established to care for Jeanne Schultz, a 77-year old Alzheimer’s patient, by her deceased husband. Allegedly, Thornes converted the trust to a margin account and conducted transactions that produced $49,000 in margin-interest charges and $11,400 in brokerage commissions for his firm. He then took $4.4 million from both accounts and transferred them to friends under the guise of loans that were never repaid. He and his friends then spent the money on vacation homes, cars, private jets and for gambling debts. This concluded in the client’s losing money and incurring unnecessary margin interest and brokerage fees. The scheme was conducted between 2010 and 2013.

If you invested money with John T. Thornes, you may be entitled to recover your investment losses by calling our securities law firm at 312-332-4200 and speaking with an attorney. The call is free with no obligation.

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltman Law Securities and Investment Fraud Attorneys