December 2016- Marietta, Georgia
We continue our investigation of former VSR Financial Services broker Parks H. Brown, Jr. who operated IM Portfolios, Inc. in Marietta, Georgia,. Our client is an elderly widow who alleges that Parks Brown, Jr. recommended the purchase of numerous unsuitable investments resulting in significant losses to her retirement nest egg.
The investments include the following securities:
- Exco Resources
- Linn Energy
- Rock Creek Pharma Inc.
- Star Scientific, Inc.
According to FINRA records Brown was registered with VSR Financial Services from 10/2005 until 7/2016. As of December 5, 2016, Parks Brown is not currently registered with any brokerage firm.
Parks Brown was named in a FINRA arbitration in 2014 (#14-1744) by a VSR Financial Services customer who alleged unsuitable investments, churning, unauthorized trades and breach of fiduciary duty. That case was settled in 9/2015 for $71,500.
In 2001, Parks Brown, who at the time was working for A.G. Edwards, was named in another arbitration ( NASD 01-1817) by a customer alleging unauthorized transactions, churning excessive concentration and violations of securities laws. A FINRA arbitration panel awarded $229,839 to the customer.
VSR Financial’s Recent Regulatory Woes
NOVEMBER 2016-FINRA Censured and fined VSR Financial $400,000, required VSR pay restitution of $4.5 million and required that the firm conduct undertakings for supervisory failures related to the sale of annuity products.
MAY 2013- VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments. In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.
Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.
If you have information you think may be helpful to our investigation, we would like to hear from you.
If you have losses in an account handled by Parks Brown or losses in a VSR Financial Services account handled by another VSR broker , contact us to discuss how you may be able to recover damages for those losses.
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