Tag Archives: VSR Financial Services

VSR Financial Services-How to Recover Damages On Investment Losses

OCTOBER  2017VSR Financial Services closed down its operations in the Fall of 2016. Many of its brokers and clients have been transferred to Summit Brokerage Services, a related entity which is part of the Cetera Financial Group.

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 and how you may be able to recover damages for losses on those investments.

 

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 On Limited Partnerships and Other Alternative Investments Purchased From VSR Financial

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 the recovery of losses on investments purchased from VSR Financial Services.

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.  , and 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

Frank Scarito-Former VSR Financial Services Broker-Discloses Settlement of Customer Dispute-Manchester, NH

April 2017-Manchester, NH

The FINRA records of  Frank Charles Scarito ,  a  stockbroker who is currently  employed by  Berthel, Fisher & Co.  a prior final customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In FINRA arbitration 15-0960 a customer of VSR Financial Services alleged damages of $389,000 for violations of Pennsylvania statutes and various common law claims in connection with the investment in direct investments, limited partnerships, equipment leasing investments, promissory notes and real estate securities. That case was settled for $65,000.

Scarito has been employed by Berthel Fisher & CO.  since 7/2016. Prior to that he was employed by VSR Financial Services from 7/2002-7/2016.

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. 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.

 VSR wound down operations at the end of 2016 and transferred most of their brokers and customer accounts to Summit Brokerage ServicesSee this for more information regarding VSR Financial Services.

If you have questions about an account  handled by Frank Scarito  or have losses on alternative investments purchased from VSR Financial Services call for a no charge consultation.

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

Mickey Long-Former VSR Financial Services Broker-Discloses Pending Customer Disputes-Plano, TX

February  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 3 pending customer disputes.

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 by customers of VSR Financial and relate to alternative investments such as REITs, oil and gas and equipment leasing. Damages sought in the three pending cases range from  $149,200 to $838,389.

In October 2016, the Texas State Securities Board (TSSB) entered a Disciplinary Order against M. F. (Mickey) Long II who operates First Financial Services Group in Plano, TX, and stock brokerage firm Calton & Associates.

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 on-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 Calton 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 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. During the summer of 2016, VSR Financial announced that they were winding down their brokerage business and transferring accounts and brokers to an affiliated entity Summit Brokerage Services.

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.

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.

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

Mickey Long-VSR Financial Broker- Sanctioned by Texas State Securities Board-Plano, TX

October 2016-Plano, Texas

The Texas State Securities Board (TSSB) entered a Disciplinary Order against M. F. (Mickey) Long II who operates First Financial Services Group in Plano, TX, and stock brokerage firm Calton & Associates.

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 on-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 Calton 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 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. 

See this for prior posts on VSR Financial Services.

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. During the summer of 2016, VSR Financial announced that they were winding down their brokerage business and transferring accounts and brokers to an affiliated entity Summit Brokerage 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.

If you have losses in an account in an account handled by Mickey Long or VSR Financial Services , 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Steven Stahler-Former VSR Financial Broker-Discloses Numerous Customer Complaints

Baton Rouge, LA

UPDATE December 2016-Publicly available records disclose that in December 2016 a customer of Steven Stahler filed FINRA arbitration #16-3594 alleging damages for unsuitable investments in direct investments, equipment leasing, real estate securities, unit investment trusts and business development companies.

Original Post June 2016– According to FINRA records,  Steven L. Stahler  a stockbroker  who  formerly worked for VSR Financial Services discloses  1 final regulatory event, 11 final customer disputes, one pending customer dispute and one pending judgment/lien.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In a currently pending matter, a customer while Stahler was employed by VSR Financial  Services alleges damages of $793,101 and alleges Stahler failed to diversify investments and was negligent in recommending direct investments in equipment leasing, oil and gas, promissory notes and REITs.

In November 2014, Stahler was suspended and fined by FINRA after being named in a FINRA complaint alleging that he made unsuitable recommendations to four customers. The recommendations were investments in private placements and REITs that were unsuitable for the customers.

Most of the previously resolved customer disputes against Stahler relate to investments made into alternative investments while Stahler was employed by VSR Financial Services. Settlements on those cases range as high as $1.3M.

Stahler was previously  registered with the following firms:

  • Lowell & Company                           8/2012=11/2013
  • Ausdal Financial Partners            12/2011-8/2012
  • Berthel Fisher Financial                 6/2009-12/2011
  • VSR Financial                                        10/1992-6/2009

In July 2013, FINRA fined VSR Financial $550,000 for over concentrating  alternative investments in customer accounts. See this for more information.

We have represented a number of people with claims against VSR Financial Services over during the past several years. Follow this link for more information on our investigation into the sales practices of VSR Financial Services.

If you have questions about an account handled  by Steven Stahler or other VSR FInancial Services broker, call for a no charge consultation.

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

Mickey Long Investigation Update-VSR Financial-Plano, TX

Plano, Texas

Rex Securities Law is investigating VSR Financial Services broker M. F. (Mickey)  Long  in connection with the sale of fixed annuities,  limited partnerships, direct investments in oil & gas,  and real estate securities.

According to FINRA records Mickey Long has been named in  eight customer disputes that have been resolved, including:

  • FINRA Case 11–01180- customer alleged Mickey Long committed negligence and breach of fiduciary duty related to sale of direct investments and limited partnership investments in oil and gas and real estate. Case was settled for $235,000

There is currently one customer dispute pending against Mickey Long:

  • FINRA Case 15-00957-customer alleges that while employed by VSR Financial Services, Long made unsuitable investments in oil & gas, equipment leasing and real estate limited partnerships and direct investments. Damages alleged are $500,000.

FINRA records report that Mickey Long was recently employed as follows:

  • 8/2007-present                         VSR FInancial Services
  • 6/2002-3/2014                           Personal Wealth Advisors
  • 3/2014-4/2015                          Wealth Preservation Consultants
  • 4/2015-present                          First Financial Services Group

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 losses in an account in an account handled by Mickey Long or VSR Financial Services , 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dennis Van Patter Investigation -First Financial Services Group-Plano,TX

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:

  • Annuity-variable
  • 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870