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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
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  • Rex Securities Law Files FINRA Arbitration Vs. VSR Financial- Plano Texas Branch

    Plano, Texas - Rex Securities Law filed an arbitration (FINRA Case #14-01249) with the Financial Industry Regulatory Authority (FINRA) against VSR Financial Services on behalf of a widow from Plano, Texas, who is seeking damages in excess of $475,000. Our client, who had no prior investment experience, received insurance proceeds of about $750,000 upon the death of her husband and opened an account with VSR Financial Services through their registered representative Dennis Van Patter.

    Upon the advice of VSR's agent, over $700,000 was invested unsuitable investments and various non-conventional alternative investments, including the following:

    Atlas Energy Public 17-2008B
    Atlas Energy Public 18 2009B
    Boston Capital Series 44
    Boston Capital Series 47
    CNL Lifestyle Fund
    Cole Credit Property Trust II
    Cypress Equipment Fund 15
    Inland American Real Estate Trust
    KBS Real Estate Investment Trust Inc.
    MPF Income Fund 25
    Penneco Oil Company 2008-1
    United Development Funding III

    The claim alleges that the investments, which were sold to her by VSR Financial broker Dennis Van Patter, owner of First Financial Services Group in Plano, were unsuitable for her and were negligently misrepresented. It also alleges that VSR Financial breached its fiduciary duty and was negligent in the supervision of its brokers.

    VSR Financial has had recent problems with securities regulators in connection with the sale of alternative investments. In May 2013, in FINRA case No. 2010022963602, VSR Financial Services was sanctioned and fined $550,000 by FINRA for failures in the supervisory systems within the company in connection with the sale of non-conventional investments to investors. VSR's co-founder and CEO Donald Beary, was also named in the enforcement action, was suspended and fined as well. FINRA made numerous findings criticizing the supervisory system failures at VSR, including the following:

    "From on or about July 28, 2005, through on or about August 19, 2010, VSR and its co-founder Donald Beary failed to adequately implement the Firm's supervisory system pertaining to its supervision of concentrated positions in alternative investments through the use of a "discount program" that artificially reduced the amount a customer had invested in a particular investment for purposes of calculating concentration. In addition, when calculating concentration at certain risk levels, VSR reduced the risk ratings on many investments making the ratings inconsistent with the risks stated in offering documents related to the investments. VSR also failed to supervise from January 1, 2006 through January 1, 2012, the use of consolidated reports by its registered representatives, resulting in inaccurate statements being sent to customers."

    Visit our website for more information on the recovery of investment losses through FINRA arbitration.

    We represent investors nationwide.

    CONTACT INFORMATION
    Robert Rex
    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.

    Apr 23 10:45 AM | Link | Comment!
  • Update On Investigation Of VSR Financial Broker Dennis Van Patter-Plano Texas

    Rex Securities Law has been investigating VSR Financialbroker Dennis Van Patter and anticipates filing a FINRA arbitration against VSR Financial on behalf of one of Van Patter's former clients. The arbitration is on behalf of a widow who opened an account following her husband's death and was sold a large number of alternative investments, including the following:

     

    • Atlas Energy Public 17-2008B
    • Atlas Energy Public 18 2009B

    • Boston Capital Series 44

    • Boston Capital Series 47

    • CNL Lifestyle Fund

    • Cole Credit Property Trust II

    • Cypress Equipment Fund 15

    • Inland American Real Estate Trust

    • KBS Real Estate Investment Trust Inc.

    • MPF Income Fund 25

    • Penneco Oil Company 2008-1

    • United Development Funding III


    The arbitration alleges that the investments are unsuitable and that VSR was negligent in the supervision of their registered representative Dennis Van Patter and breached their fiduciary duty to their customer. Van Patter operates a company called First Financial Services Group in Plano, TX.

    If you believe you were sold unsuitable investments by your broker, call to discuss your legal rights 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.

    Apr 10 2:48 PM | Link | Comment!
  • Inland American Share Repurchase---Options For Investors

    In a letter dated March 14, 2014, Inland American Real Estate Trust notified investors that it was offering to buy back about 6% of the outstanding shares. Investors were provided with a form allowing them to elect to offer for sale, all, or some of their shares at prices ranging from $6.10 to $6.50 per share. This is well below the $10 that most investors paid when they bought their shares from the company.

    Inland American is a non-publicly traded REIT and as investors now know, illiquid.

    The company is only committing $350 million to this buyback so it is highly likely that the amount of shares investors want to sell at this price will far exceed the amount that investors will offer. This means that many investors will still be stuck owning their shares with the only sales option being one of the privately operated secondary markets where shares of Inland American have been trading for about $6.

    Inland American was the largest REIT offered by Inland Group, Inc. the Oak Brook that formed the REIT in 2004. During 2007, Inland Group was raising $300 million a month.Inland American was their largest REIT, raising about $8 billion between 2005 and 2009, which is purportedly the record amount ever raised by any unlisted REIT.

    Many investors were sold unlisted REITs like Inland American with the promise of regular and dependable distributions of income (like a bond) , an assurance that the value was not likely to decline and with an expectation of making a profit within 5-7 years. Most investors did not understand that they might have trouble liquidating the investment should they need cash.

    Investors who were misled by their broker as to the true nature of non traded REITs may wish to consider filing a FINRA arbitration to recover damages. Call to discuss your legal rights 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.

    Apr 09 11:10 AM | Link | Comment!
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