Category Archives: John H. Towers (VSR Financial)

VSR Financial Services-How to Recover Damages On Investment Losses

FEBRUARY 2017 UPDATEVSR Financial has closed operations. Many of its brokers and clients have been transferred to Summit Brokerage Services, a related entity. See below for discussion of VSR’s regulatory issues related to the sale of real estate investment trusts (REITs), oil and gas partnerships and other alternative investments.

 

ORIGINAL POST June 2016—Overland, Kansas

VSR Financial Services will be closing down and transferring some of its brokers and current clients to another firm within the Cetera network of broker dealers, according to a spokesman for Cetera Financial Group.

RCS Capital, Cetera’s parent has been in bankruptcy and this consolidation is part of their restructuring. The company has indicated it will also close down Investors Capital Corp. , another small independent broker dealer as well. It is expected that most of the current brokers of VSR and Investors Capital will be asked to join Summit Brokerage Services, which is headquartered in Boca Raton, FL.

VSR’s  Alternative Investment Problem

VSR is well known for its sales of alternative investments such as non-traded REITs, equipment leasing programs, oil & gas drilling programs, promissory notes and commodity funds. In 2013, VSR and its president Donald Beary, were sanctioned by FINRA in connection with the sale of alternative investments. VSR paid a fine of $550,000.

Recovery of Investment Losses From VSR

Over the past several years we have represented a number of investors, mostly retirees, who were recommended alternative investments with the promise of steady, dependable income and minimal risk.

Follow this link for other postings related to VSR’s alternative investment issues. 

If you have suffered losses as a result of investing in alternative investments that were recommended to you by a VSR Financial Services broker (including, but not limited to John Towers, Dennis Van Patter, Mickey Long, Parks Brown, Jr. or Keith Bradley) , we may be able to help you recover damages.

Time is of the essence, so if you have a claim, you would be wise to pursue immediately.

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

VSR Financial Sold to RCS Capital Corp.

On August 7, 2014, The Investment News reported that RCS Capital Corp. (RCAP) , a broker dealer controlled by Nicholas Schorsch, has agreed to buy VSR Financial Services, Inc. Terms of the deal were not disclosed.

During the past year RCAP announced the purchase of four Cetera Financial Group broker dealers, Investors Capital Holdings, First Allied Holdings, Summit Financial, and J.P. Turner. 

VSR Financial, which was recently sanctioned by the Financial Industry Regulatory Authority (FINRA) for improper sales of alternative investments, is based in Overland, Kansas.  VSR has over 260 financial advisors nationwide and more than $12 billion of assets under management. See details here. 

We are investigating potential investor claims for investors suffering losses on unsuitable investments purchased 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

 

RSL INVESTIGATES VSR BROKER M.F. (MICKEY) LONG II & PERSONAL WEALTH ADVISORS, LLC

Rex Securities Law is investigating VSR Financial Services broker Mickey Long II, of Plano , TX, and his company Personal Wealth Advisors, LLC,  on behalf of several customers who were sold high concentrations of alternative investments that have resulted in significant losses. Our clients attended dinner meeting/sales seminars sponsored by VSR Financial Services, Inc. during which Mickey Long and former VSR Financial broker, John H. Towers, gave presentations on various alternative investments.

Some of the investments purchased by our clients include:

Alliance Petroleum Corp 2006-B

Alliance Petroleum Corp. 2007A

Altegris Winton Futures Fund LP Class A

Arciterra Note Fund III, LLC

Arciterra Strategic Retail Echelon

Arcitera Whitefish Opportunity Fund

Atlas America Public #17-2007A Ltd.

Behringer Harvard REIT, I, Inc.

Bradford Drilling Associates 27, LP

Cole Credit Property Trust II, Ltd.

Cypress Equipment Fund 13

Cypress Equipment Fund 15

Florida Capital Real Estate Partners 27

FS Investment Corporation

KBS REIT, Inc.

Mewbourne Energy Partners 9A, 10A, 11A, 12A

NetREIT Common

Odyssey Residential Realty II LLC 9% Note

Odyssey Properties III

Reef Income & Development Fund 3

Reef SWD 2007-A

Waveland Drilling Partners 2006-B, 2007-A, 2008-B

Waveland NeoMatrix, LLC

Waveland Resource Partners

Waveland Vanguard Partners

The Certified Financial Planning Board website lists Mickey Long and John H. Towers under the “suspension” category on its listing of disciplined individuals.

VSR Financial was recently sanctioned and assessed a fine of $550,000 in connection with the sale of alternative investments, non-conventional investments and private placements. (FINRA Case #2010022963602, July 2013.)

John H. Towers was discharged from VSR in December 2013 after he was fined $25,000 and suspended for three months connection with the sale of over $6 million in alternative investments to a couple who were seeking low risk investments. See this for more details. 

Our clients anticipate filing one of more FINRA arbitrations in the immediate future seeking the recovery of damages. If you have information related to these matters we would appreciate hearing from you.

If you have questions about investments made through Mickey Long, John H. Towers or Dennis Van Patter or any other VSR Financial Services, Inc. broker, please call us at 561 391 1900 to discuss this matter with an experienced securities attorney. Contingent fee representation.

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

VSR Broker M.F. (Mickey) Long II & Personal Wealth Advisors, LLC Investigated by Rex Securities Law

Rex Securities Law is investigating VSR Financial Services broker Mickey Long II, of Plano , TX, and his company Personal Wealth Advisors, LLC,  on behalf of several customers who were sold high concentrations of alternative investments that have resulted in significant losses. Our clients attended dinner meeting/sales seminars sponsored by VSR Financial Services, Inc. during which Mickey Long and former VSR Financial broker, John H. Towers, gave presentations on various alternative investments, including the following:

Alliance Petroleum Corp 2006-B

Alliance Petroleum Corp. 2007A

Altegris Winton Futures Fund LP Class A

Arciterra Note Fund III, LLC

Arciterra Strategic Retail Echelon

Arcitera Whitefish Opportunity Fund

Atlas America Public #17-2007A Ltd.

Behringer Harvard REIT, I, Inc.

Bradford Drilling Associates 27, LP

Cole Credit Property Trust II, Ltd.

Cypress Equipment Fund 13

Cypress Equipment Fund 15

Florida Capital Real Estate Partners 27

FS Investment Corporation

KBS REIT, Inc.

Mewbourne Energy Partners 9A, 10A, 11A, 12A

NetREIT Common

Odyssey Residential Realty II LLC 9% Note

Odyssey Properties III

Reef Income & Development Fund 3

Reef SWD 2007-A

Waveland Drilling Partners 2006-B, 2007-A, 2008-B

Waveland NeoMatrix, LLC

Waveland Resource Partners

Waveland Vanguard Partners

The Certified Financial Planning Board website lists Mickey Long and John H. Towers under the “suspension” category on its listing of disciplined individuals.

VSR Financial was recently sanctioned and assessed a fine of $550,000 in connection with the sale of alternative investments, non-conventional investments and private placements. (FINRA Case #2010022963602, July 2013.)

John H. Towers was discharged from VSR in December 2013 after he was fined $25,000 and suspended for three months connection with the sale of over $6 million in alternative investments to a couple who were seeking low risk investments. See this for more details. 

Our clients anticipate filing one of more FINRA arbitrations in the immediate future seeking the recovery of damages. If you have information related to these matters we would appreciate hearing from you.

If you have questions about investments made through Mickey Long, John H. Towers or Dennis Van Patter or any other VSR Financial Services, Inc. broker, please call us to discuss this matter with an experienced securities attorney. Nationwide representation.

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

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

 

Investigation of John H. Towers-VSR Financial-UPDATED JAN 2014

 JANUARY 2014 UPDATE: In January 2014, John Towers was fined $25,000 and suspended for three months by FINRA in connection with the sale of over $6 million of real estate investment trusts (REITs) and private placements to a couple that had indicated they wanted only moderate risk for their brokerage account. Official FINRA  records report that Towers was discharged by VSR Financial 12/31/2013.  See this for more details. 

Rex Securities Law, Boca Raton, FL , is investigating VSR Financial broker John H. Towers on behalf of one of his former customers whose account suffered losses in alternative investments. The subject account of our elderly client was invested in a number of alternative investments that appear unsuitable given her age, limited net worth and lack of financial sophistication.

The investments include the following:

  • Penneco Oil Company
  • Odyssey Diversified Notes IX
  • Arciterra Note Fund III, LLC
  • Mewbourne Energy Partners 10-A
  • Mewbourne Energy Partners 11-A
  • Waveland Resource Partners I
  • Waveland Energy 2011-A
  • Waveland Drilling Partners 2008A
  • UDF III
  • UDF Land Opportunity
  • NetReit

According
to FINRA records, Towers has been registered with VSR Financial
Services, Inc. since June 2002, and offices in Plano, 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 are generally not considered suitable for
retired conservative investors.

In May 2013, VSR
Financial Services was fined $550,000 for sales of alternative
investments that were too high a concentration level for customer
accounts, for falsifying sales documents and for providing inaccurate
and misleading reports.
See here for more information.

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