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.

• 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 newcases@investorlawyers.net for a no-cost, confidential consultation.