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VSR Financial Pays $3.74 Million To Settle Investor Claim

VSR Financial Pays $3.74 Million To Settle Investor Claim 150 150 Rex Securities Law

VSR Financial Services and their co-defendants settled a case involving high risk, illiquid alternative investments for $3.74 million. The case, Gordon B. McLendon, Jr. and Tri-State Theaters vs. Chapman Hext & Co. , et al, Cause No. 12-01326 was prosecuted in Dallas County district court.

The plaintiffs alleged that from 2006-2008 VSR Financial Services broker, Charles E. Chapman recommended they purchase about $7 million worth of the following illiquid investments:

  • Icon Leasing Fund Eleven
  • NetREIT 2006 Program
  • Passco Real Estate Enterprises
  • Waveland Drilling Partners 2007
  • ATEL Growth Capital Fund III
  • Bradford Drilling Associates XXIII
  • Cypress Equipment Fund 13
  • LEAF Equipment Leasing Income Fund III
  • Mewbourne EnergyPartners 07-A
  • Cypress Income Fund VI
  • CNL Income Properties
  • Bradford XXV
  • NetREIT 2008
  • DBSI 2006 Notes

FINRA records indicate that Chapman is not currently registered with FINRA. His recent registration history is listed as:

  • Berthel Fisher & Co.                6/2009-20/2013
  • VSR Financial Services           8/1999-6/2009

FINRA fined VSR Financial $550,000 in 2013 for failing to establish and enforce a reasonable supervisory system regarding the sale of this type of investments, known as alternative or non-conventional investments.

If you suffered damages as a result of the recommendation of your broker that you purchase high risk alternative investments, contact us to learn more about your options.

We currently have a number of cases pending against VSR Financial Services that involve alternative investments. See this 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

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