Horace Mann Investors

Kurta Law is investigating investment recommendations by Horace Mann brokers. Investors should know about the firm’s conflicts of interest and be aware that the firm works with brokers who have records of alleged misconduct.

Horace Mann Investors (CRD #: 11643) is a brokerage firm with headquarters in Springfield, Illinois. Investors may have engaged Horace Mann Investors’ services under 120 other business names, all of which are listed on the firm’s BrokerCheck profile.

Horace Mann Investors offers both brokerage services and investment advisory services. Investors should make sure they understand what type of service they have selected as well as the fees associated with their financial professionals’ services.

Fees and Related Conflicts of Interest

Brokerage firms are required by the Customer Relationship Summary (Form CRS) to disclose their conflicts of interest to their investors. It is essential that investors understand how these conflicts of interest affect their broker/investor relationship.

• Transaction-based fees create an incentive for brokers to encourage you to trade more often.
• Proprietary annuities come with asst-based fees based on a percentage of assets invested in the annuity contract. Therefore, Horace Mann brokers have an incentive to encourage you to increase your assets in a proprietary annuity.
• Mutual funds and variable universal life insurance policies come with fees that create a conflict of interest for brokers.
• Investment advisory accounts charge asset-based fees, so advisors have an incentive to encourage you to put more money in your advisory account.

Regulatory Action Involving 403(b) Retirement Plans

There are six disclosures on Horace Mann Investors’ record. Kurta Law wants investors to review a regulatory action involving 403(b) retirement plans. You can review the complete list of regulatory actions on the firm’s detailed BrokerCheck record.

$250,000 Delaware Fine

On December 30, 2019, the Investor Protection Unit of the Delaware Department of Justice (IPU) alleged that Horace Mann Investors failed to reasonably supervise one of its representatives and his efforts to retain 403(b) clients. IPU alleged that the representative employed misleading sales practices, failed to provide a prospectus to many of his 403(b) clients, and recommended unsuitable investments to 403(b) clients.

IPU ordered Horace Mann Investors to pay a fine of $250,000 as well as $50,000 for investor education.

Brokers’ Disciplinary Histories

Horace Mann Investors’ Form CRS includes the following “Questions to Consider” when hiring a Horace Mann broker. “As a financial professional, do you have any disciplinary history? If so, for what type of conduct?”

Kurta Law is aware of the following current or former Horace Mann brokers with BrokerCheck disclosures. This is not necessarily a complete list, and you should contact Kurta Law if you have any concerns about your broker’s conduct:

• Martha Frost: https://www.kurtalawfirm.com/blog/martha-frost/
• Edward Durant: https://www.kurtalawfirm.com/blog/edward-durant/

Kurta Law Can Help

Investors who lost money working with a Horace Mann broker should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.