Horter Investment Management, LLC

Includes form instructions and options. Options shown in this text do not identify which boxes were selected.

GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an 
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or
11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed
Execution Page. 

One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an
event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A.  The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). 
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
No Information Filed
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or
applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's
favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if
that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that
occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: 
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD
for the event? If the answer is "Yes," no other information on this DRP must be provided.
 Yes
 No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1.  Regulatory Action initiated by:
SEC   
Other Federal   
State   
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) 
SECURITIES AND EXCHANGE COMMISSION
2.
Principal Sanction:
Disgorgement
Other Sanctions: 
CIVIL MONEY PENALTY, CENSURE, PREJUDGMENT INTEREST, CEASE & DESIST
3.
Date Initiated (MM/DD/YYYY): 
10/02/2017
 Exact
 Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
6.
Principal Product Type:
Other
Other Product Types: 
EXCHANGE TRADED FUNDS (ETF'S)
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
IN A DECEMBER 2014 SETTLEMENT WITH THE SEC, F-SQUARED INVESTMENTS, AN UNAFFILIATED FORMER SIGNAL PROVIDER TO HORTER INVESTMENT MANAGEMENT,
ADMITTED THAT IT HAD VIOLATED FEDERAL SECURITIES LAWS RELATED TO INACCURATE PERFORMANCE INFORMATION FOR THE PERIOD APRIL 2001 THROUGH
SEPTEMBER 2008. THE SEC CONDUCTED A SWEEP OF INVESTMENT ADVISERS THAT HAD RELIED ON F-SQUARED'S INACCURATE PERFORMANCE INFORMATION WHICH
INCLUDED HORTER INVESTMENT MANAGEMENT. IN THE SETTLEMENT ORDER, WHICH HORTER NEITHER ADMITTED OR DENIED, THE SEC ANNOUNCED HORTER
VIOLATED SECTIONS 204(A), 206(2) AND 206(4) OF THE ADVISERS ACT AND RULES 204(A)(16), 206(4)-1(A)(5) AND 206(4)-7 THEREUNDER, BY DISTRIBUTING TO
CLIENTS AND PROSPECTIVE CLIENTS PERFORMANCE ADVERTISING MATERIALS PROVIDED BY F-SQUARED WHICH CONTAINED FALSE OR MISLEADING INFORMATION,
FAILING TO ADOPT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT VIOLATIONS OF THE ADVISERS ACT AND FAILING TO MAINTAIN
RECORDS SUBSTANTIATING THE PERFORMANCE IN THE ADVERTISEMENTS CREATED BY F-SQUARED.

8.
Current Status?      
 Pending
 On Appeal
 Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Decision & Order of Offer of Settlement
11. Resolution Date (MM/DD/YYYY):
12/08/2017
 Exact
 Explanation
If not exact, provide explanation:
12. Resolution Detail:
A.  Were any of the following Sanctions Ordered (check all appropriate items)?
 Monetary/Fine Amount: $ 250,000.00
 Revocation/Expulsion/Denial
 Disgorgement/Restitution
 Censure
 Cease and Desist/Injunction
 Bar
 Suspension
B.
Other Sanctions Ordered:
PREJUDGMENT INTEREST
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial
Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam
required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide
total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: 
$778,804 LEVIED AGAINST HORTER INVESTMENT MANAGMENT INCLUDES $482,595 DISGORGEMENT, $46,209 PREJUDGMENT INTEREST AND $250,000 PENALTY
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within
the space provided).
$194,701 DUE WITHIN 10 DAYS OF THE ENTRY OF THE ORDER AND $584,103 TO BE PAID IN 3 INSTALLMENTS OF $194,701 WITHIN 180 DAYS, 270 DAYS AND 360
DAYS OF THE ENTRY OF THE ORDER.

Includes form instructions and options. Options shown in this text do not identify which boxes were selected.

GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an 
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D., 11.E., 11.F. or
11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)
11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File with a completed
Execution Page. 
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the same event. If an
event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A.  The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). 
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE

CRD
Number:
1049771
This advisory affiliate is 
a Firm
an Individual
Registered:
Yes
No
Name:
HORTER, DREW, KENT
(For individuals, Last, First,
Middle)
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is registered or
applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the adviser's or advisory affiliate's
favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item 11.D(4), and only if
that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any event listed in Item 11 that
occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the circumstances: 
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to the IARD or CRD
for the event? If the answer is "Yes," no other information on this DRP must be provided.
 Yes
 No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1.  Regulatory Action initiated by:
SEC   
Other Federal   
State   
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) 
2.
Principal Sanction:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanctions: 
3.
Date Initiated (MM/DD/YYYY): 
09/08/2021
 Exact
 Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
FILE NO. 3-20531
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):
HORTER INVESTMENT MANAGEMENT
6.
Principal Product Type:
No Product
Other Product Types: 
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
THE SEC HAS ALLEGED THAT HORTER INVESTMENT MANAGEMENT AND DREW HORTER FAILED TO REASONABLY SUPERVISE FORMER INVESTMENT ADVISER
REPRESENTATIVE KIMM HANNAN AND FAILED TO REASONABLY ADOPT AND IMPLEMENT POLICIES AND PROCEDURES DESIGNED TO SAFEGUARD CLIENT ASSETS
AGAINST MISAPPROPRIATION BY MR. HANNAN AND TO IMPLEMENT POLICIES AND PROCEDURES IT HAD ADOPTED.
8.
Current Status?      
 Pending
 On Appeal
 Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Decision & Order of Offer of Settlement
11. Resolution Date (MM/DD/YYYY):
10/15/2024
 Exact
 Explanation

If not exact, provide explanation:
12. Resolution Detail:
A.  Were any of the following Sanctions Ordered (check all appropriate items)?
 Monetary/Fine Amount: $ 100,000.00
 Revocation/Expulsion/Denial
 Disgorgement/Restitution
 Censure
 Cease and Desist/Injunction
 Bar
 Suspension
B.
Other Sanctions Ordered:
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial
Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam
required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide
total amount, portion levied against you or an advisory affiliate, date paid and if any portion of penalty was waived: 
DREW K HORTER WAS SUSPENDED FROM ASSOCIATING IN A SUPERVISORY CAPACITY WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL
SECURITIES DEALER, MUNICIPAL ADVISOR, TRANSFER AGENT, OR NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION, FOR A PERIOD OF 6 MONTHS
BEGINNING OCTOBER 28, 2024, AND WAS FINED $50,000.
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response must fit within
the space provided).
IN CONNECTION WITH FINDINGS BY THE COMMMISSION IN NOVEMBER 2022, THAT HORTER INVESTMENT AND DREW HORTER FAILED TO REASONABLY SUPERVISE
WITHIN THE MEANING OF ADVISERS ACT SECTIONS 203(E)6 AND 203(F) AND 206(4)-7. ON OCTOBER 15, 2024, THE COMMISSION ISSUED ITS FINAL ORDER
IMPOSING REMEDIAL SANCTIONS AGAINST HORTER INVESTMENT AND HORTER INCLUDING CIVIL PENALTIES IN THE AMOUNT OF $100,000 AND $50,000,
RESPECTIVELY, AND A SIX-MONTH SUPERVISORY SUSPENSION FOR DREW HORTER.