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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • Options For Investors WIth Losses On Private Placements/Alt Investments Purchased From VSR Financial 0 comments
    Sep 26, 2013 1:21 PM

    Customers who purchased private placements and/or other alternative investments from VSR Financial may be able to recover damages for losses on these investments if the broker misrepresented the investments when he was selling them or if the investments are not suitable for your portfolio.

    Brokers are required to "know the customer" and to make investment recommendations that are suitable, taking into account the customer's age, health, investment experience, investment objectives and risk tolerance.

    VSR Financial was recently sanctioned and assessed a fine of $550,000 in connection with the sale of alternative investments, non-conventional investments and private placements. (FINRA Case #2010022963602, July 2013.)

    The FINRA investigation criticized VSR for allowing customers to invest too large a percentage of their net worth in these alternative investments and for allowing brokers to provide inaccurate reports to customers and for falsification of documents used to obtain approval of the sales of these products. Because of the inaccurate pricing used by brokers and the firm's lack of supervision, customers received statements with erroneous pricing information.

    Some of the alternative investments sold by VSR Financial include:

    • Penneco Oil Company
      • Odyssey Diversified Notes IX
      • Arciterra Note Fund III
      • Mewbourne Energy Partners
      • Waveland Resource Partners
      • Waveland Energy 2011-A Drilling
      • UDF III
      • UDF Land Opportunity
      • NetREIT
      • Odyssey Diversified VI
      • Arciterra Note Fund III
      • Odyssey Diversified Notes IX
      • MPF Income Fund 22 LLC
      • Behringer Harvard Opp REIT
      • Cole Credit Property Trust II
      • DBSI 2008 Notes Corporation

    In October 2010, VSR Financial broker Michael D. Shaw entered into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA and consented to a permanent bar from the industry for misrepresentations and unsuitable recommendations made in connection with the sale of private placement investments . ( AWC 2010022963601).

    Shaw was found to have misrepresented the risks associated with the sale of private placements and to have made unsuitable recommendations to customers. In addition Shaw altered internal VSR compliance documents in order to falsely qualify the customers for purchase of the subject investments. Shaw was barred from the industry.

    If you purchased alternative investments, private placements and/or other non-conventional investments from VSR Financial and believe that the nature of the risk associated with the investments was misrepresented or if you feel the investments are not suitable, you may be able to recover damages through FINRA arbitration.

    Call for a no charge consultation with an experienced securities attorney.

    Nationwide representation.

    Rex Securities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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