Category Archives: NonTraded Business Development Companies

Thomas P. Smith-Former Titan Securities Broker-Discloses Customer Dispute Over Alternative Investment-Arlington, TX

April 2017-Arlington, Texas

The FINRA records of  Thomas P. Smith ,  a   stockbroker who is currently registered with Center Street Securities disclose a pending 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 currently pending FINRA case #16-3184 a customer of his prior employers Titan Securities & Newbridge Securities alleges damages of $250,000 for negligence, violations of the Texas Securities Act and other claims related to the purchase of a non-traded alternative investment.

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.

 

Smith has been employed by Center Street Securities since 5/2016. He was with Titan Securities from 8/2011-6/2016 and with Newbridge Securities 6/2010-8/2011. Smith discloses a business relationship with Bering Financial in Arlington, TX.

If you have losses in an account in an account handled by Thomas P. Smithcontact 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

Charles Kulch Investigation-NEXT FInancial/Investors Capital Broker-Nashua, NH

April 1, 2016- Nashua, New Hampshire

FINRA records report that NEXT Financial Group stockbroker Charles Kulch , of Nashua ,New Hampshire,  lists two customer disputes:

  • FINRA Case 15-0762-the customer alleges that NEXT Financial Group misrepresented the special risks associated with investments in certain tenant in common (TIC) investments, and that the investments were unsuitable as the fees and risks far outweigh the potential tax deferment. Damages are alleged to be $4,500,000.
  • FINRA Case 15-0813-alleges suitabililty and misrepresentation regarding investments made with the registered representative between August 2004 and November 2008 while Kulch was employed with Investors Capital Corp and NEXT FInancial Group.  Investments are oil & gas , real estate and limited partnerships. Damages are alleged to be $499,000.

Kulch has been named in four regulatory matters. See FINRA records for details. 

 

If you have losses in an account handled by Charles Kulch, contact us to learn how you may be able to recover damages from his employer.

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 Services Ordered to Pay Couple $307,000 For Recommendation of Alternative Investments

February 17, 2016

A FINRA (FInancial Industry Regulatory Authority) arbitration panel recently ordered VSR Financial Services to pay  a Louisiana couple  over $300,000 in damages for losses on non-traded real estate investment trusts (REITs), promissory note programs, limited partnerships and private oil drilling programs. FINRA Case # 15-00834.

Some of the specific investments at issue in this case were:

  • MPF Senior Note Program
  • Atlas America Series #25-2004B
  • AmREIT Monthly Income & Growth II
  • Cole Credit Property Trust
  • ArciTerra Note Fund II

The claimants alleged that VSR Financial and broker Michael Shaw, committed fraud, breached their fiduciary duty, were negligent, misrepresented the investments and other claims.

In May 2013, VSR Financial was sanctioned by FINRA in connection with the sale of alternative investments. See this for more details on that regulatory matter. 

If you have losses in your account at VSR Financial Services, contact us for more information.

For more information on VSR Financial and its brokers in the Plano, Texas area and elsewhere, see this. 

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 VFG Securities in Plano, Texas- Sale of REITs & Alternative Investments

February 17, 2016- Plano, Texas

Rex Securities Law is investigating VFG Securities, a broker dealer headquartered in Culver City California, with offices in Plano, Texas, in connection with the sale of real estate investment trusts (REITs), direct participation programs (DPPs) and other alternative investments.

According to a recently filed regulatory complaint, FINRA alleges that VFG Securities failed to supervise its brokers properly, allowing them to over concentrate the portfolios of customers with risky and illiquid investments, including REITs and DPPs.

A book, The Wealth Code, authored by VFG’s president Jason B Vanclef is alleged to have been improperly used as a sales tool by VFG SecuritiesSee this for more details. 

According to VFG’s website they have several registered representatives in Plano, Texas, including the following:

John M. Brady-registered with VFG Securities since 11/2010.

Scot A. Clevenger-registered with VFG Securities from 2/2012-5/2013 and 5/2014-present.

Mark Trewitt-registered with VFG Securities since 11/2010. According to his FINRA record, in 9/2014 a customer complained that his $25,000 investment in KBR Barons Cove had been misappropriated . That matter was settled for $25,000.

If you have information you believe would be helpful to our investigation, please contact us. If you have losses in an account at VFG Securities, contact us to discuss how you may be able to recover damages.

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 Pays $3.74 Million To Settle Investor Claim

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