Hornor, Townsend & Kent LLC – Broker Misconduct, Regulatory Actions, and Customer Complaints
The White Law Group is investigating potential securities claims involving Hornor, Townsend & Kent LLC
(CRD#: 4031/SEC#: 801-56151, 8-14715), a dual-registered broker-dealer and investment adviser headquartered
in Horsham, Pennsylvania. According to Financial Advisor Magazine’s 2025 ranking, the firm is now among the
top 20 independent broker-dealers in the U.S., based on gross revenue reported as of December 31, 2024.
HTK reportedly generated $136 million in revenue in 2021 and continues to be recognized for its position
in the independent advisory space.
As of 2025, the firm has 17 disclosures on its FINRA record, including 11 regulatory actions and
6 customer arbitrations.
Hornor, Townsend & Kent – Broker Misconduct & Customer Complaints
Broker-dealers have a duty to supervise their representatives to prevent misconduct. When they fail to do so,
the firm may be held liable for investor losses due to negligent supervision.
Charles William Wodrich (CRD#: 2715728) – Barred by FINRA
In January 2025, Charles “Chip” Wodrich, a former broker with Hornor, Townsend & Kent, was permanently
barred by FINRA. The action stemmed from his refusal to provide documents and testimony in a FINRA
investigation into:
- Unsuitable investment recommendations
- Unauthorized discretionary trading
- Unapproved communications using personal email
Wodrich’s failure to cooperate resulted in a permanent bar from the securities industry, effective
January 6, 2025.
Clay Erickson (CRD#: 1583644) – Unauthorized Transactions
In October 2019, FINRA reportedly suspended and fined broker Clay Erickson for executing unauthorized
transactions totaling over $5.3 million in variable annuity contracts. Erickson allegedly moved client
funds without authorization, despite not having discretionary authority.
He was affiliated with Hornor, Townsend & Kent in Salt Lake City, Utah, from 2011 to 2016 and has six
customer complaints on file, according to FINRA.
FINRA Sanctions Involving Hornor, Townsend & Kent
March 2023 – FIP Sales and Supervision Failures
The firm was fined $180,000 and censured after failing to supervise a representative who sold over
$7 million in Future Income Payments (FIP), an alleged Ponzi scheme. The firm reportedly failed to act
after initially receiving notice of the outside business activity in July 2013 and did not follow up
when it denied the request months later.
November 2017 – Variable Annuity Oversight
FINRA sanctioned the firm $275,000 for failing to maintain a system to supervise multi-share class variable
annuity sales, particularly L-share contracts, which accounted for nearly 47% of all VA sales. FINRA
determined the firm’s system did not ensure suitability reviews were properly conducted.
FINRA Rule 3110 – Supervision
FINRA Rule 3110 requires brokerage firms to implement effective systems to ensure compliance and protect
investors. Key elements include:
- Qualified supervisors
- Written supervisory procedures
- Regular inspections and account reviews
Failure to adhere to this rule can expose firms to regulatory penalties and liability for investor losses.
Recovering Investment Losses through FINRA Arbitration
Investors harmed by broker misconduct may have legal recourse through FINRA arbitration.
The White Law Group has successfully handled over 700 FINRA claims, helping investors recover losses related to:
- Unsuitable investment recommendations
- Fraud or misrepresentation
- Selling away or Ponzi schemes
- Unauthorized trading
Our securities attorneys can evaluate your case, draft your Statement of Claim, and represent you throughout
the arbitration process.
National Securities Arbitration Attorneys
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago
and Seattle. With over 30 years of experience in securities law, our firm is dedicated to helping investors
nationwide.
If you have concerns about your investments with Hornor, Townsend & Kent, please contact us at
888-637-5510 for a free consultation.
Learn more at whitesecuritieslaw.com.
FAQs
1. What happened to Charles Wodrich of Hornor, Townsend & Kent?
Charles Wodrich was permanently barred by FINRA in January 2025 for failing to cooperate in an investigation
involving unsuitable recommendations and unauthorized trading.
2. Can I recover losses from a Hornor, Townsend & Kent financial advisor?
Yes, if your advisor recommended unsuitable investments or engaged in misconduct, you may be able to recover
your losses through FINRA arbitration.
3. What does it mean when a brokerage firm is fined by FINRA?
FINRA fines indicate that the firm violated securities regulations, often relating to supervision or sales
practices. These violations can form the basis for customer claims seeking restitution.
