According to FINRA, Dennis Van Patter (CRD# 1364583), a financial advisor registered with VSR Financial in Plano, Texas since 1997, recently entered into a Letter of Acceptance Waiver and Consent (AWC) to resolve allegations that he violated numerous NASD and FINRA rules by recommending investments that were not suitable for his customer.
According to the AWC, while associated with VSR Financial Services, he allegedly recommended that a customer, a retired commercial pilot, invest $1.614 million in alternative investments such as REITs, note programs, oil & gas drilling partnerships and private placements.
In addition to making recommendations that were far riskier that the customer's expressed wishes, FINRA noted that as a result of Van Patter's recommendations the customer had approximately 52% of his liquid net worth concentrated in high risk alternative investments.
The AWC was signed by Van Patter on 11/5/2015. As part of the AWC, Van Patter was suspended from association with any FINRA member for 45 days and fined $10,000.
The findings in the AWC do not appear to be isolated. According to Van Patter's FINRA BrokerCheck, he has been the subject of 8 customer complaints, many of which appear to involve similar allegations as those raised by FINRA in its AWC.
The White Law Group is investigating the liability that VSR Financial may have for failure to properly supervise Van Patter. Brokerage firms are required to supervise their advisors to ensure that they are following FINRA Rules. In particular, brokerage firms are required to ensure that all recommendations that are made by their agents are suitable for their client in light of that client's age, investment experience, net worth, investment objectives, and time horizon. If a firm permits unsuitable investments to be made, the firm can be held responsible for the losses in a FINRA arbitration claim.
For more details on the firm's investigation, visit http://www.whitesecuritieslaw.com/2016/02/02/investor-alert-dennis-van-patter-suspended-by-finra/.
If you suffered losses investing with Dennis Van Patter and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on the firm, visit www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.