Dennis Van Patter-FINRA Arbitration Filed –Plano, Texas

Rex Securities Law has been investigating VSR Financial 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. The arbitration is on behalf of a widow who received insurance proceeds of about $750,000  following her husband’s death and was sold a large number of unsuitable investments including the following alternative investments:

  • 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 UPDATE FEBRUARY 2016- FBI RAIDS UNITED DEVELOPMENT FUNDING OFFICES IN GRAPEVINE, TEXAS 

 

The arbitration alleges that the investment strategy was unsuitable and that Van Patter’s employer, VSR Financial Services was negligent in the  supervision of their registered representative Dennis Van Patter and breached their fiduciary duty to their customer. Van Patter operates his financial business through 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. 

Investors with losses in accounts handled by Dennis Van Patter may be able to recover damages from VSR Financial Services. Call to discuss your options.

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

Inland American REIT-Investors Consider Options

By Robert H. Rex, Esq.

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


561 391 1900

Rex Securities Law Investigates Former Investment Professionals Inc. Broker Jason Miller

Rex Securities Law is investigating Jason Todd Miller who previously worked for Investment Professionals, Inc. (IPI), in Ash Flat, Arkansas. Our client is an elderly widow who was anticipates filing a FINRA arbitration alleging that Miller convinced her to invest the bulk of her liquid net worth into unsuitable investments, including Inland American real estate investment trust. In connection with the investment, our client alleges that Miller misrepresented her income level, her liquid net worth, tax bracket and investment experience.

Miller worked out of an IPI office located within the Horseshoe Bend  branch of FNBC Bank.
According to FINRA records, Miller was a registered representative of Investment Professionals Inc.  from 8/2003-3/2009 and he is not currently registered with any broker dealer. Investment Professionals Inc. has its main office in San Antonio, Texas.
His previous registrations include:
  • American Express Financial Advisors, Little Rock, Arkansas
If you have information you feel would be helpful 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

Wade Lawrence-Lubbock, Texas–Lawsuit Filed Against Southwest Securities Broker

UPDATE February 13, 2015– Former investors with Wade J. Lawrence should see this recent posting regarding the investigation of Wade J. Lawrence. 

(12/8/2013)  -According to The Sandstorm Scholar an online news and editorial commentary that, according to the website, “favors policy over personality and principle over populism”, and serves Lubbock and West Texas, a lawsuit Larry K. Lowe vs. Wade J. Lawrence, has been filed at the Lubbock County Courthouse. Follow this for a link to the Sandstorm Scholar posting on that topic. Here is a link provided by Sandstorm Scholar to the purported actual lawsuit.

Lubbockonline reports that there are two suits filed against Lawrence in the 237th District Court alleging that he failed to pay back $1 million in loans from two individuals. In addition to the suit brought by Lowe, James Morris, now deceased loaned Lawrence $850,000 while Lawrence was working for Oppenheimer & Co. FINRA records indicate Lawrence was with Oppenheimer 6/2008-7/2011.
In March 2014, FINRA barred Lawrence, who formerly was registered with Southwest Securities, 8/2011-12/2013, from the industry.
Southwest Securities is headquartered in Dallas, Texas. Hilltop Holdings Inc. , the parent company of PlainsCapital Corp. , acquired SWS Group, Inc. in January 2015. Southwest Securities and SWS Financial are subsidiaries of Hilltop Holdings.

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

 

Sagepoint Financial Ordered to Pay $700,000 Restitution-Failure to Supervise Guy Weber

In December 2013, Missouri securities regulators censured Sagepoint Financial and ordered the company to pay disgorgement and restitution of $700,000 to resolve claims that Sagepoint failed to reasonably supervise Guy F. Weber, a Missouri-registered agent who engaged in dishonest or unethical practices in violation of Missouri law.
FINRA records indicate that a customer filed an arbitration against Weber seeking damages of $274,477 for fraud, misrepresentation and breach of fiduciary duty. In August 2013, the matter was settled for the full amount of the requested damages.
Brokers have a duty to make suitable recommendations to investors. If you have suffered losses in your brokerage account due to the negligence of fraud of a stockbroker you may be able to recover damages 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

FINRA Accuses NSM Securities of Over Trading Accounts of Those of Indian Descent

By Robert H. Rex, Esq.


In November 2013, in a Letter of Acceptance, Waiver and Consent, Case No. 2011027667401, Irving Marvin Burstein, Chief Compliance Officer of NSM Securities agreed to a one year suspension from association with any member of FINRA in a principal capacity. Burstein, who has been with 15 different broker-dealers during his career and was a registered principal with NSM from 9/2005-7/2011. 

FINRA alleged that while acting as chief compliance officer, Burstein failed to supervise the activities of NSM’s registered representatives and failed to implement the firm’s Written Supervisory Procedures (WSP). Moreover, the FINRA filing, which can be viewed here, alleges that: 

“NSM’s business model is to solicit customers who are high net worth individuals of Indian descent, and then engage in a highly active trading strategy in their accounts involving only a few securities. During the relevant period, many NSM customer accounts were excessively traded in order to generate large fees for NSM registered representatives and the firm. Burstein’s failure to supervise the activities of the firm’s registered representatives, coupled with his failure to enforce the firm’s WSPs helped to create a culture of noncompliance at NSM that resulted in the rampant churning of customer accounts, unsuitable recommendations, unauthorized trading, and significant customer harm.” 

If you had an account at NSM Securities that suffered damages, call to discuss your legal rights. 

Nationwide representation.


561 391 1900

FINRA Assesses Some Big $$ Fines to Broker Dealers

By Robert H. Rex, Esq.

In April 2014, the Investment News published the following “8 big-money FINRA Fines”:
 
  • Berthel Fisher & Co. Financial Services fined $775,000 to resolve claims that they didn’t adequately train or supervise brokers selling alternative investments (REITs, limited partnerships,private placments, etc) and traditional Exchange Traded Funds (ETFs)
  • LPL Financial fined $950,000 to resolve allegations related to supervisory deficiencies in connection with the sale of alternative investment products.
  • COR Clearing, LLC(formerly Legent Clearing LLC) censured and fined $1,000,000 by FINRA for several compliance deficiencies including anti-money laundering procedures, financial reporting and supervision. 
  • Triad Advisors fined $650,000 and ordered to pay restitution of $375,000 because of a failure to supervise hundreds of brokers who created and distributed to clients inaccurate consolidated account statements. 
  • State Trust Investments of Miami, FL, fined $1,045,000 and ordered to pay restitution of $353,319 for charging unfair markups and markdowns in corporate bond transactions. 
  • Merrill Lynch fined $900,000 and ordered to pay restitution of $1.1 million for selling mutual funds of floating-rate bank loans during the credit crisis that were not suitable for their clients.
  • Wells Fargo Advisors fined $1.250,000 and ordered to pay restitution of $2 million for same reason as Merrill above, selling mutual funds of floating-rate bank loans during the credit crisis. 
  • LPL Financial fined $7.5 million and ordered to pay restitution of $1.5 million, for a total of $9 million in what is alleged to be the largest FINRA fine ever, for significant failures of their email system. 
Stockbrokers and broker dealers have a duty to make suitable recommendations to their customers. If you believe you are the victim of broker negligence or fraud, call to discuss your legal rights. 
 

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