The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two investors alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that VSR Financial unsuitably invested the clients in the following investments (among others):
Reef Oil and Gas Income and Development Fund 3, Mewbourne MEP 07, Reef Saltwater Disposal 2007-A, Waveland 2007-A, Bradford Energy, Vestara Medical, Passco Waikoloa, DBSI, Behringer Harvard Opportunity REIT, Berhinger Harvard REIT I, MPF Fund 24, Behringer Harvard Multifamily REIT, Net REIT, United Development Fund, and KBS REIT.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that VSR Financial failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
For more information on the claim filed by The White Law Group, please contact the firm's Chicago office at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.