Update on John H. Towers Investigation-VSR Financial

Rex Securities Law has been investigating VSR Financial broker John H. Towers on behalf of several of his customers whose account suffered losses in private placements, REITs and other alternative investments.

UPDATE APRIL 2014- ANOTHER FINRA ARBITRATION FILED AGAINST VSR– Rex Securities Law filed another  FINRA arbitration against VSR to recover damages in excess of $475,000 on behalf of two St. Petersburg, FL residents who allege that VSR broker John Towers sold them unsuitable non-conventional investments including the following:

  • ArciTerra REIT
  • Bradford Drilling Assoc 23
  • Cypress Equipment Fund 13
  • Cypress Income Fund III 8.25% Note
  • Florida Capital Real Estate Partners 27, Ltd.
  • Mewbourne Energy Partners 07-A LP
  • NetREIT Common
  • Odyssey Operating Partnership II
  • Odyssey Properties III Inc.
  • United Development Funding III
  • Waveland Drilling Partners 2007-A LP
  • Waveland Vanguard Partners LLC
  • Waveland Vestara-Class B

UPDATE FEBRUARY 2014FINRA ARBITRATION FILED AGAINST VSR-Rex Securities Law files FINRA arbitration against VSR to recover damages in excess of $600,000 for two Dallas, TX area residents who allege that VSR broker John Towers sold them unsuitable alternative investments.

The investments made in the customer accounts included various gold funds (First Eagle Gold Fund, Invesco Gold & Precious Metals, Van Eck International Investors Gold) and :

  • Alliance Petroleum Corp. 2006B
  • Arciterra Strategic Retail Echelon
  • Arciterra Whitefish Opportunity Fund
  • Atlas  America Public #17
  • Bradford Drilling Assoc 27
  • Cypress Equipment Fund 13
  • Florida Capital Real Estate Partners 27
  • NetREIT Common
  • Mewbourne Energy Partners 9, 10, 11, 12
  • Odyssey Properties III
  • Odyssey Residential Realty II, 9% Note
  • Reef SWD 2007-A
  • Ridgewood Energy Funds
  • Waveland Drilling 2006-B
  • Waveland Drilling 2007-A
  • Waveland Drilling 2008-B
  • Waveland Resource Partners
  • Waveland Vanguard Partners

On December 18, 2013, without admitting or denying the findings, Towers entered into an Acceptance, Waiver and Consent (AWC) with FINRA which provides for a three month suspension starting January 21, 2014, and ending April 20, 2014, and a civil and administrative penalty of $25,000.

In its investigation, FINRA alleged that Towers recommended that a married couple invest in high risk private placements and real estate investment trusts (REITS) totalling over $6 million dollars and representing over 70% of their invested capital. According to FINRA allegation, the private placements and REITs recommended by Towers were all described in the offering documents as high risk investments. The couple had stated a moderate risk tolerance on their new account forms and specified that no more than 10% of their account be invested in high risk products. Towers provided false and inaccurate values of the investments that had no correlation to prices published by his firm and despite knowing that the investments had declined in value listed the couple’s original cost basis rather than the actual current value specified by the firm.

According to FINRA records, Towers has been registered with VSR Financial Services, Inc. since June 2002, and operates Personal Wealth Advisors, LLC in Plano, Texas, and John H. Towers & Associates in Tyler 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 and private placements are generally not considered suitable for persons not wanting to accept high risk.

If you have information which you feel may be of assistance to our investigation , we would appreciate hearing from you. If you have suffered losses in an account handled by John Towers you may be able to recover all or a part of those losses through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

Former LPL Financial Broker David Lisnek Arrested for Fraud

In December 2013, David Lisnek, age 45, a former Springfield financial advisor, was arrested for defrauding an 84 year old Sangamon County woman out of thousands of dollars. Lisnek is charged with financial exploitation of the elderly.
According to local news reports, Lisnek encouraged women to write checks to him personally to “avoid problems with the feds”.
Lisnek was suspended by the State of Illinois Securities Department on November 11, 2013, and was discharged the next day by his former employer LPL Financial LLC.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Lubbock Broker Tracy Spaeth Charged with Securities Fraud

 

In October 2013, Tracy Morgan Spaeth of Lubbock , TX,  was arrested and charged with fraudulent sale of more than $100,000 in securities.  Texas Securities Commissioner John Morgan suspended Spaeth’s investment adviser registration in May 2013 and ordered him to pay back more than $90,000 in commissions. The suspension is in connection with the sale of interests in a private offering by an Arizona investment group, Hampton Capital Markets.
Hampton was offering a “low latency arbitrage strategy” that supposedly exploited inefficiencies in the prices of leveraged index exchange-traded funds by extremely high speed trading executions and touted returns of 10-50% according to the Texas State Securities Board. Spaeth, who most recently was owner of Uncommon Wealth Management, recommended that 31 clients invest in Hampton from July to September 2011.
The sale of more than $100,000 in fraudulent securities is a first degree felony and carries a potential prison sentence of life, or from 5 to 99 years.
Spaeth’s official records on the FINRA BrokerCheck website indicate that he was registered with the following broker dealers during the time periods indicated:
  • BrokersXpress LLC 7/2009-12/2010
  • LPL Financial  11/1999-7/2009
If you have questions about the way your brokerage account has been handled or feel you are the victim of securities fraud or negligence, call to discuss your legal rights.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Rex Securities Law Investigates Former G.A. Repple Broker Bruce Traub-Sale of Church Bonds

Casselberry, Florida

Rex Securities Law is  investigating broker Bruce H. Traub on behalf of an elderly lady whose portfolio was invested in a highly concentrated position of church bonds that have dropped greatly in value. The subject bonds include:

  • Church Fellowship Worship Ministries, Inc. Mtg Bd. 2007 7.9% 6/19/30
  • Madison Pk Church of God Anderson Ind 1st Mtg Bd Ser A 10% 7/31/19
  • Ark of Safety Christian Church Inc. Upper Marlboro MD 1st Mtg 4/15/14
  • Ark of Safety Christian Church Inc. Upper Marlboro MD 1st Mtg 10/15/14
  • Faith Bible Church Ft ML Inc 1st Mtg Ser A 7.1% 4/15/15
  • Faith Bible Church Ft ML Inc 1st Mtg Ser A 7.6% 10/15/18
  • Windermere Baptist Conference, Roach MO 1st Mtg 8% 11/15/13
  • Windermere Baptist Conference, Roach MO 1st Mtg 8.4% 11/15/25
  • Philadelphia Haitian Baptist Church, Orlando FL 1st Mtg 8.4% 5/28/30
  • Philadelphia Haitian Baptist Church, Orlando FL 1st Mtg 8.4% 11/28/30
  • Church Fellowship Worship Ministries, 1st mtg, 7.9% 6/19/30
  • Madison Pk Church of God, Anderson IND, 10%, 7/31/19
  • Madison Pk Church of God, Anderson IND, 7.9%, 1/31/31

According to FINRA records, Bruce Homer Traub has been registered with Ministry Partners Securities, Brea California, since 11/2013. He was previously registered as follows:

  • G.A. Repple & Company                              5/2012-11/2013
  • Cambridge Investment Research Advisors 6/2011-5/2012
  • Strongtower Financial                                    5/2003-8/2011

If you have information related to this investigation we would appreciate hearing from you.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Stephen M. Brown-Former LPL Financial Broker-Plano,TX-Barred From Securities Industry

Plano, Texas

In November 2013, FINRA announced that Stephen Michael Brown (CRD# 1221582) of Terrell, TX, was barred from association with any FINRA member in any capacity. This sanction was based on findings that Brown failed to respond to FINRA requests to provide documents, information and testimony in connection with an investigation into the allegations of a civil action brought against Brown by one of his customers.
The suit, which resulted in a civil judgment against Brown, related to a private real estate investment that Brown had recommended outside the scope of his employment with his member firm.
According to FINRA records, Brown was previously registered with the following firms:
  • Best Direct Securities 11/2010-5/2011
  • Brewer Financial Services 5/2009-11/2010
  • LPL Financial Services 8/1989-5/2009

In FINRA Case# 13-2370, a customer filed a claim alleging that Brown solicited him to make investments with Brown directly rather than in products sold by employer LPL Financial. That case was settled for $900,000.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Mark John Nuovo- Former Euro Pacific Capital Broker–Barred By FINRA-Ponzi Scheme

In November 2013, FINRA announced that Mark John Nuovo (CRD# 2010267) was barred from association with any FINRA member in any capacity, based on findings that he introduced customers to a promoter who sold securities offered by a company that purportedly sold and serviced medical insurance through membership organizations or other large groups.

The Securities and Exchange Commission has filed a complaint in the US District Court for the Northern District of Texas charging two company executives with fraud for operating a Ponzi scheme. Individuals Nuovo introduced to the promoter invested a total of $2.55 million in securities offered by the fraudulent company. Nuovo was paid about $107,500 for referring investors but did not disclose his compensation to investors. Nuovo misled potential investors by suggesting that he had personally invested between $300,000 and $1,000,0000 and that the success of the company would permit him to retire.
Nuovo failed to inform his activities to his firm and concealed the activity by using his personal email address and cell phone number and by falsely stating to his firm that he was not involved in any private securities transactions.
According to FINRA records, Nuovo was registered with the following firms:
  • Euro Pacific Capital  7/2008-1/2012
  • Uvest Financial Services 11/2007-4/2008
If you have questions about the way your brokerage account has been handled or think you may be a victim of securities fraud or negligence, call to discuss your legal rights with an experienced securities attorney.

 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Kevin Marris Coats-Former Farmers Financial Solutions Broker -Barred by FINRA

In November 2013, FINRA announced that Marris Kevin Coats (CRD #4469855) of Belton, Texas, had been barred from the industry based on findings that he collected cash premium payments totaling at least $4,984 from insurance customers but failed to deposit the funds in the firm’s designated premium account. Instead Coats converted the funds for his personal use.

According to FINRA records, Coats was registered with Farmers Financial Solutions, LLC from 9/2002-9/2012.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870