Tag Archives: First Financial Services Group complaint

Mickey Long-Former VSR Financial Broker-DIscloses Numerous Customer Complaints Over Alternative Investments-Plano, TX

November  2017-Plano, Texas

According to public records former VSR Financial Services broker M. F. (Mickey) Long discloses a prior final regulatory event, 10 prior customer disputes that are final and 4 pending customer disputes. In addition Long discloses a prior regulatory matter that is final.

Three of the prior customer disputes were brought by Long’s customers while he was employed by VSR Financial Services and allege damages related to investments in real estate investment trusts (REITs), oil and gas, equipment leasing and promissory notes (alternative investments). Settlements paid by VSR Financial in those three cases are $196,500, $82,500 and $235,000.

The three pending cases against Long are all brought by customers of VSR Financial and relate to alternative investments such as REITs, oil and gas and equipment leasing. Damages sought in the four pending cases range from  $94,438 to $838,389. Claims alleged are highly unsuitable investments that are illiquid and that were overly concentrated.

In October 2016, the Texas State Securities Board (TSSB) entered a Disciplinary Order against M. F. (Mickey) Long II. 

The TSSB Order made certain findings with regard to Mr. Long’s business practices during the time he was employed by VSR Financial Services (6/2002-6/2016), including the following:

  • Long routinely recommended that VSR Financial clients invest in non-listed real estate investment trusts (REITs) and interests in exploratory drilling programs sold through private offerings (Alternative Investments)
  • Long recommended that a client of VSR Financial who was over 70 years of age invest in Alternative Investments at risk tolerance levels that were excessive.
  • Long did not have a reasonable basis to believe that the recommendations he made to invest in the Alternative Investments were suitable for this elderly client.

Long and and his new employer Calton & Associates agreed that so long as Mr. Long is registered with Calton he will not sell or recommend the purchase of any Alternative Investments.  In addition, Long and Calton agreed that Calton will establish a heightened supervision plan for the supervision of Mr. Long’s practice for two years. Mr Long’s registration with TSSB was suspended for 45 days as a part of the Order.

See this for prior posts on Mickey Long. 

VSR Financial’s Prior Issues with Alternative Investments

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. VSR Financial announced that they were winding down their brokerage business and transferring many of their brokers and customer accounts  to an affiliated entity Summit Brokerage Services in the fall of 2016.

See this for prior posts on VSR Financial Services.

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.

Long was employed by VSR FInancial  Services from 6/2002-7/2016. He has been registered with Calton & Associates since 6/2016. Long discloses a business affiliation with Wealth Preservation Consultants and  First FInancial Services Group.

If you have losses in an account in an account handled by Mickey Long or  another VSR Financial Services broker, contact us to discuss how you may be able to recover damages for those losses.

The Law Offices of Robert H. Rex, P.C.  , 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

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dennis Van Patter Investigation- VSR Financial, Plano, Texas -Update

March 9, 2016-Plano Texas

Over the past few years we have represented a number of individuals with claims against brokers, including Dennis Van Patter, who, while employed by VSR Financial Services, sold real estate investment trusts (REITs), oil and gas partnerships, equipment leasing programs and other alternative investments to unsuspecting investors.

The Financial Industry Regulatory Authority (FINRA) reports that another arbitration was recently filed against VSR Financial Services broker Dennis Van Patter.

In FINRA Case #16-00091, filed in January, 2016, a customer makes the following allegations:

  • unsuitability
  • breach of fiduciary duty
  • violations of Texas securities laws

The investments complained of in this recent case appear to be substantially the same investments as we have seen in the prior VSR cases: direct investments, limited partnerships, oil and gas securities and real estate securities.

FINRA records  report that Van Patter has been involved in 7 customer disputes that have been resolved. In these prior cases customers alleged unsuitability, negligence, misrepresentation, breach of fiduciary duty.  See this for details. 

Van Patter Sanctioned by FINRA

In November 2015, Van Patter, who operates his business through First Financial Services Group in Plano, Texas was fined and suspended by FINRA to resolve allegations that he recommended investments that were not suitable to his customers. See this for more details.

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 Dennis Van Patter, you may be able to recover damages from VSR Financial Services. 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dennis Van Patter Named in Second Arbitration Complaint-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. See this for details on that matter.

On May 9th, 2014, Rex Securities Law filed a second FINRA arbitration against VSR Financial on behalf of another one of Van Patter’s former clients from Richmond, Texas. That arbitration is on behalf of a retired couple in their mid-70’s who allege that they were misled as to the nature of  the investments they were sold and that the investments are unsuitable. Damages in excess of $400,000 are being sought on claims that VSR Financial was negligent in its supervision of Van Patter.

The unsuitable investments include the following:

  • Allianz Master Dex 10 Annuity
  • Bradford Drilling XVIII
  • Black Diamond Diamond Energy
  • Boston Capital Series 30
  • Cole Credit Property Trust II
  • Franklin Founding Funds
  • Franklin Income Funds
  • Global Macro Trust
  • Inland American REIT
  • KBS REIT
  • MPF Income Fund 22
  • Retail Property of America (Inland Western REIT)
  • United Development Funding

The arbitration alleges that the investment strategy was unsuitable given the age, health and lack of financial sophistication of the retired couple and that VSR was negligent in the  supervision of their registered representative Dennis Van Patter and breached their fiduciary duty to their customer. Van Patter operates a company called 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.

If you have losses in an account handled by Dennis Van Patter, 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