Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of the unsuitable recommendation and sale of alternative investments. In one recent arbitration claim, filed in Texas, two VSR Financial Services clients are seeking $600,000 in damages that allegedly resulted from the unsuitable recommendation and sale of alternative investments. The investments named in the claim include:
- NetREIT Common
- Florida Capital Real Estate Partners 27
- Bradford Drilling Associates 27, LP
- Arcitera Whitefish Opportunity Fund
- Arciterra Strategic Retail Echelon
- Alliance Petroleum Corp 2006-B
- Atlas America Public #17-2007A Ltx.
- Cypress Equipment Fund 13
- Mewbourne Energy Partners 9A, 10A, 11A, 12A
- Waveland Vanguard Partners
- Waveland Resource Partners
- Waveland Drilling Partners 2006-B, 2007-A, 2008-B
- Reef SWD 2007-A
- Odyssey Properties III
- Odyssey Residential Realty II LLC 9% Note
According to the claim, the allegedly unsuitable investments were sold by John H. Towers, a former broker for VSR Financial. The claim also alleges negligent misrepresentation by Towers and negligent supervision and breach of fiduciary duty by VSR Financial Services.
Under Financial Industry Regulatory Authority (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, stock fraud lawyers say firms have an obligation to properly supervise brokers’ activities while they are registered with the firm.
Reportedly, FINRA suspended Towers in January 2014. His suspension was in connection with real estate investment trusts and private placements. In that case, a couple who had done business with Towers claimed that they did not authorize the high risk investments.
In addition, VSR Financial Services was sanctioned and fined in May 2013 in connection with sales of non-conventional investments including private placements that were found to be excessive. Securities fraud attorneys believe there may be other VSR Financial Services investors who were the victims of securities fraud.
If you suffered significant losses as a result of the unsuitable recommendation and sale of private placements or alternative investments, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or firstname.lastname@example.org for a no-cost, confidential consultation.