Investigation of Former Hornor, Townsend & Kent, Inc. Financial Advisor Thomas Sova
Posted on Saturday, March 30th, 2019 at 10:14 am
Erez Law is interested in speaking with investors who may have suffered losses due to investments with former Hornor, Townsend & Kent, Inc. financial advisor Thomas Sova (CRD# 431135) regarding Woodbridge Group of Companies losses. Sova was registered with Hornor, Townsend & Kent, Inc. in Baton Rouge, Lousiana from 2007 to 2018, when he was terminated regarding, “Registered Representative was discharged for violation of firm policies and procedures regarding disclosure of outside business activities relating to the outside sale of an unapproved and unregistered security.”
In February 2019, FINRA suspended Sova for five months and sanctioned him to a civil and administrative penalty of $5,000 and disgorgement in the amount of $5,000. According to Sova’s BrokerCheck profile, Sova consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing written notice to, or obtaining approval from his member firm. It is alleged that Sova solicited investors to purchase promissory notes relating to the Woodbridge Group of Companies. It is alleged that “Sova sold $250,000 in Woodbridge promissory notes to three investors, one of whom was his firm’s customer. Sova received $5,000 in commissions in connection with these transactions. The firm’s written supervisory procedures required registered representatives to conduct any selling activity through the firm and specifically required registered representatives to obtain firm approval before engaging in private securities transactions involving the offer of promissory notes.”
The Woodbridge Group of Companies is a southern California luxury real estate developer that missed payments on notes sold to investors and filed chapter 11 bankruptcy in December 2017, along with 275 subsidiaries and affiliates, citing “unforeseen costs associated with ongoing litigation and regulatory compliance.” It is alleged that elderly and other investors invested millions of dollars into the Woodbridge Group of Companies investment programs. The investors were allegedly told that these were secure investments in real estate, which is not the case as evidenced by these bankruptcy proceedings.
The SEC is investigating whether 235 LLCs have violated the anti fraud, broker-dealer and securities registration provisions of the federal securities laws in connection with the Woodbridge Group of Companies receipt of more than $1 billion of investor funds from thousands of investors nationwide. The SEC is investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities. Monetary claims against Woodbridge remain pending.
Sova has been the subject of one customer complaint, according to his CRD report:
April 2018. “The arbitration claim alleges the registered representative sold an unregistered security in May 2016.” The customer is seeking $100,001 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Hornor, Townsend & Kent, Inc. may be liable for investment or other losses suffered by Sova’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.