Broker barred for stealing $4.2 million from two clients

Finra says one client, scammed out of $1.7 million, had Alzheimer's

Jul 22, 2013 @ 4:02 pm

By Dan Jamieson

finra, broker
+ Zoom

Finra has barred a California broker and suspended his broker-dealer firm over allegations that he stole $4.2 million from two clients, one of whom Finra says suffers from Alzheimer's disease.

John Thornes, president of Thornes & Associates Inc. of Redlands, Calif., was barred from the industry and his firm was expelled from Financial Industry Regulatory Authority Inc. membership.

Finra alleged that from December 2010 and January 2013, Mr. Thornes converted customer assets in two trust accounts, using at least 50 transactions falsely characterized as loans, and transferred the money to two of his friends.

One victim was a 77-year-old retired homemaker with Alzheimer's who lived in a nursing home, Finra said in the settlement agreement.

Mr. Thornes diverted about $1.7 million from the homemaker's $2 million trust account, Finra said.

In another instance, a $3 million trust account created by a deceased friend of Mr. Thornes' parents to fund educational scholarships was depleted of $2.5 million, using the same fictitious loan scheme, Finra claimed.

None of the loans have been repaid, Finra said.

Mr. Thornes did not respond to a call and an e-mail. The case was settled last Thursday and recently released by Finra. It's unclear whether Mr. Thornes faces any criminal charges in the matter.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What to do when your partnership ends

Breaking up is hard to do: and that is certainly true when it comes to advisory firms. Financial Adviser Rob Holdford tells his story and explains how you can survive and thrive when a partnership dissolves.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

LPL retains $570 million with super-OSJ deal

Kansas-based nVision Wealth will come under supervision of Chicago-based IHT Wealth Management.

How does your advisory firm stack up?

Comparing a firm's pay to the competition can point out vast flaws.

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print