November 20, 2015-Plano, Texas
Dennis Van Patter , a broker with VSR FInancial Services operates his financial service business through First Financial Services Group in Plano, Texas.
Van Patter recently entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he violated numerous NASD and FINRA rules by recommending investments that were not suitable for the customer.
According to the AWC, while associated with VSR Financial Services from 2008-2010, he recommended that a customer invest $1.6 million in alternative investments such as REITs, note programs, oil & gas drilling partnerships and private placements.
Per FINRA, the investments recommended by Van Patter were all described in the offering documents as being “speculative,” “highly speculative,” “highly risky,” and/or involving a “high degree of risk.” This was contrary to the customer’s expressed desires. The customer had ranked his top four objectives and risk tolerance on the VSR new account forms as: 1-Moderate Income, 2- Moderate Growth and Income, 3- Moderate Growth, and 4-Conservative Growth.
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.
AWC No. 2013036647401
Van Patter was suspended from association with any FINRA member for 45 days and fined $10,000.
FINRA records reveal that Van Patter has been named in 7 customer disputes that have been finalized. In May 2015 a customer filed an arbitration seeking damages of $495,000 alleging misrepresentation, breach of fiduciary duty and negligence. The products involved were:
- Direct Investments-DPP & LP Interests
- Equipment leasing
- Equity Listed
- Oil & Gas
- Real Estate security
- Other: Gold
That matter, FINRA Case #14-01249, was settled for $215,000.
According to FINRA records, Van Patter has been registered with VSR Financial Services since 1997.
VSR FINANCIAL’S PRIOR FINRA SANCTION FOR SALE OF ALTERNATIVE INVESTMENTS
In May 2013 VSR Financial was sanctioned and assessed a fine of $550,000 by FINRA in connection with the sale of alternative investments, non-conventional investments and private placements. See our prior posting on that matter.
If you have losses in an account handled by Van Patter, you may be able to recover damages. Call to discuss your options 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.
Florida-561 391 1900