Investor Lawyers Blog
Investor arbitration lawyers continue to investigate claims on behalf of customers of VSR Financial Services regarding the unsuitable recommendation and sale of alternative investments.
Another claim was filed recently against one broker registered with VSR Financial Services, Dennis Van Patter. This particular claim is regarding the following alternative investments:
- Inland American Real Estate Trust
- Cole Credit Property Trust II
- KBS Real Estate Investment Trust Inc.
- Cypress Equipment Fund 15
- CNL Lifestyle Fund
- Boston Capital Series 44
- Boston Capital Series 47
- United Development Funding III
- MPF Income Fund 25
- Penneco Oil Company 2008-1
- Atlas Energy Public 17-2008B
- Atlas Energy Public 17-2009B
According to securities arbitration lawyers, these investments were unsuitable for the claimant and may have been unsuitable for other VSR customers. The claim, filed on behalf of a Texas widow, is attempting to recover damages of more than $475,000. According to the claim, the widow received around $750,000 in insurance proceeds after the death of her husband. She then opened an account with Van Patter at VSR Financial.
The claim alleges unsuitability and negligent misrepresentation on the part of Van Patter as well as breach of fiduciary duty and negligent supervision on the part of VSR Financial. Under FINRA rules, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Furthermore, lawyers say firms have an obligation to properly supervise brokers’ activities while they are registered with the firm.
In addition, VSR Financial was sanctioned and fined, while its CEO and co-founder, Donald Beary, was suspended and fined in May 2013 for failure to adequately supervise non-conventional investment sales to investors.
If you are a VSR Financial Services customer who suffered significant losses as a result of the unsuitable recommendation of alternative investments, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.