Alleged conversions include two trusts – one that helped provide Alzheimer’s care and another used to provide scholarships
On August 8, following a 21-year career in the securities industry, John Thomas Thornes has been permanently barred from practicing as a broker by the US Securities and Exchange Commission according to a report published by FINRA.
Thornes was suspended in May for allegedly failing to comply with a prior settlement agreement or award, as well as failure to respond to a FINRA request, according to a FINRA disclosure on Thornes’ broker report.
Thornes’ firm, Thornes & Associates, Inc., was expelled by FINRA in July 2013, following allegations that he had converted about $4.2 million in funds belonging to two separate trusts between December 2010 and January 2013. Of the trusts from which the funds were converted, one was being maintained to provide Alzheimer’s care to a senior citizen and the other was used to provide scholarships. According to the FINRA report on the incidents, the transfers were also improperly categorized as loans.
The funds Thornes allegedly converted during that time went directly to two of his friends, who reportedly used the money on lavish goods like a private jet and a vacation home, in addition to gambling, says the report.
In 2014, the SEC lodged an additional civil suit against Thornes on the same charges of conversion, stating that he allegedly stole $4.4 million from the two trusts. The SEC also alleged that Thornes put his mother in control of the educational trust and convinced her to sign blank checks that he then allegedly misappropriated. The judgment in the case determined that Thornes would pay back nearly $4.4 million.
Embezzlement is a breach of fiduciary responsibility and a common type of fraud. This happens when a person uses lawfully attained assets for an unintended purpose, such as transfer into a personal account. Depending on the scale of the crime, embezzlement may be punishable by large fines and jail time. With the growing retirement community, elder financial fraud, breach of fiduciary duty and other claims are on the rise against financial advisors handling funds for seniors and others.
If you have been financially affected by the misconduct of John Thomas Thornes or the misguided actions of any financial adviser, you may be entitled to some measures of recovery. Silver Law Group’s experienced securities fraud attorneys seek to help you get back what you have lost at the hands of financial advisers through securities arbitration.
When you first consult with Silver Law Group, you can expect a complimentary consultation with a skilled securities arbitration attorney who can help you navigate the sometimes-overwhelming landscape of securities arbitration. Every case at Silver Law Group is handled on a contingent-fee basis, in which you do not pay legal fees unless we win your case.
If you have suffered loss at the hands of financial advisers like Thornes or his peers, you may have legal rights. Contact Silver Law Group today to take the first steps toward your loss recovery.