April 2017-Eastland, Texas
We are continuing our investigation of former VSR Financial Services broker James Roy Kennedy in connection with the sale of unsuitable investments, including alternative investments in real estate investment trusts (REITs), limited partnerships, direct investments and promissory notes .
According to FINRA records Kennedy has been named in four customer disputes which alleged unsuitable investments and resulted in financial settlements with the customers:
- In 2008 a customer of VSR Financial Services alleged, on behalf of his mother, that Kennedy had recommended and sold unsuitable investments in a variable annuity. That case was settled for $7,500.
- In another case in 2008, customers of VSR Financial Services alleged that investments in real estate investment trusts (REITs) , variable annuities and mutual funds had caused them damages of $200,000. That case was settled for $55,000.
- In NASD arbitration 4-04053, a customer ofVSR Financial Services alleged that a managed account and an investment in a REIT were unsuitable. That case was settled for $97,500.
Kennedy was registered with VSR Financial Services from 1997 until 7/2016, and he is currently registered with Calton & Associates.
James Kennedy discloses affiliations and business relationships with the following companies in Eastland, TX:
- Smart Money Group
- Jim Kennedy Insurance
- Kennedy Financial Services
If you have losses in an account handled by James Roy Kennedy or other VSR Financial Services broker, contact us to discuss how you may be able to recover damages for those losses.
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 many of their 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.
In the fall of 2016, VSR Financial Services closed their operations and transferred most of their brokers and customer accounts to Summit Brokerage Services, an affiliated entity.
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.
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