Rex Securities Law has been investigating VSR Financial Services broker Dennis Van Patter and on April 22, 2014, filed a FINRA arbitration against VSR Financial on behalf of one of Van Patter's former clients. See this for details on that matter.
On May 9th, Rex Securities Law filed a second FINRA arbitration againstVSR Financial on behalf of another one of Van Patter's former clients from Richmond, Texas. That arbitration is on behalf of a retired couple in their mid-70's who allege that they were misled as to the nature of the investments they were sold and that the investments are unsuitable. Damages in excess of $400,000 are being sought on claims that VSR Financial was negligent in its supervision of Van Patter.
The unsuitable investments including the following alternative investments:
- Allianz Master Dex 10 Annuity
- Bradford Drilling XVIII
- Black Diamond Diamond Energy
- Boston Capital Series 30
- Cole Credit Property Trust II
- Franklin Founding Funds
- Franklin Income Funds
- Global Macro Trust
- Inland American REIT
- KBS REIT
- MPF Income Fund 22
- Retail Property of America (Inland Western REIT)
- United Development Funding
The arbitration alleges that the investment strategy was unsuitable given the age, health and lack of financial sophistication of the retired couple 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.
VSR Financial was fined $550,000 in 2013 by FINRA in connection with the sale of private placements and alternative investments. See this for more information.
If you believe you were sold unsuitable investments by your broker, call to discuss your legal rights with an experienced securities attorney.
561 391 1900
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.