Thursday, July 25, 2013 – 04:00 p.m.
Redlands-based investment advisory firm Thornes and Associates, and its principle John Thornes, have been barred from the financial services industry.
The order by the Financial Industry Regulatory Authority (FINRA), is based on a settlement that didn’t contest any of the allegations, was effective July 20, 2013.
The action comes on the heels of stunning allegations the long-time investment advisor improperly converted some $4.2 million of client funds into unsecured improperly documented personal loans to Highland resident Christopher Burnell and Redlands resident Kyle Larick.
Client funds reportedly were spent on lavish luxury gifts including, among other things, private jet charters, a high-end luxury car and real estate.
Just under $1 million of the illegally-taken monies was funneled through San Manuel Indian Bingo and Casino, where much of it was gambled away by Burnell.
Last week, federal agents executed a search warrant at Burnell’s Santa Ana Canyon Rd residence in Highland.
To read the FINRA order click here: FINRA Order – Thornes & Associates