April 2014 UPDATE-RSL files FINRA arbitrations against VSR Financial on behalf of several former clients of John Towers and VSR Financial.
JANUARY 2014 UPDATE: In January 2014, John Towers was fined $25,000 and suspended for three months by FINRA in connection with the sale of over $6 million of real estate investment trusts (REITs) and private placements to a couple that had indicated they wanted only moderate risk for their brokerage account. See this for more details.
Rex Securities Law, Boca Raton, FL , is investigating John H. Towers on behalf of one of his former customers whose account suffered losses in alternative investments. The subject account of our elderly client was invested in a number of alternative investments that appear unsuitable given her age, limited net worth and lack of financial sophistication.
The investments include the following:
- Penneco Oil Company
- Odyssey Diversified Notes IX
- Arciterra Note Fund III, LLC
- Mewbourne Energy Partners 10-A
- Mewbourne Energy Partners 11-A
- Waveland Resource Partners I
- Waveland Energy 2011-A
- Waveland Drilling Partners 2008A
- UDF III
- UDF Land Opportunity
According to FINRA records, Towers has been registered with VSR Financial Services, Inc. since June 2002, and offices in Plano, Texas.
Real estate investment trusts, especially those not traded on a conventional exchange, as well as other alternative investments such as oil and gas and other limited partnerships are generally not considered suitable for retired conservative investors.
In May 2013, VSR Financial Services was fined $550,000 for sales of alternative investments that were too high a concentration level for customer accounts, for falsifying sales documents and for providing inaccurate and misleading reports. See here for more information.
If you have information which you feel may be of assistance to our investigation , we would appreciate hearing from you.
561 391 1900
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.