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.
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.
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.
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