Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with VSR Financial Services and/or Michael David Shaw, a financial advisor. Allegedly, Shaw and VSR Financial Services may have engaged in misconduct in connection with the sales of REITs, alternative investments, hedge funds and private placements.
Reportedly, the Financial Industry Regulatory Authority accepted a Letter of Acceptance, Waiver and Consent on May 15, 2013 from VSR Financial Services. In the letter, the firm agreed to pay a fine of $550,000 which will settle allegations that the firm failed to adequately supervise the sales of alternative investments to customers. In particular, the firm allegedly failed to supervise the concentration of these investments in customer portfolios.
In addition, securities arbitration lawyers say that in October 2011, a trader calling himself Michael Daniel Shaw submitted a Letter of Acceptance, Waiver and Consent. In this letter he consented to the findings that he had recommended the sale of private placements, which were high-risk, to customers for whom he did not have a reasonable basis to believe they were suitable transactions. Furthermore, Shaw allegedly made material omissions or misrepresentations regarding the purchase or sales of the private placements.
Financial Industry Regulatory Authority rules have established that 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, investment fraud lawyers say brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer.
If you suffered significant losses as a result of your investments with Michael David Shaw, Michael Daniel Shaw or VSR Financial Services, 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 for a no-cost, confidential consultation.