Yet another FINRA Arbitration Filed Against VSR Financial Over Alternative Investment Losses

PLANO, Texas - Feb. 20, 2014 - PRLog -- The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of a Texas investor 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 client in the following investments (among others):

Cypress Inc Fund II

Cole Collat. Sr. Notes IV

Cypress Equip Fund X

MacFarlan Divers. Inc

DBSI 2005 Secure Notes 8.15%

ICON Lease Fund 11

CNL Retirement Prop

Behringer/Harvard REIT I

Penneco PDA 2005-1

PIMCO Comm Real Ret

PIMCO All Asset C

PIMCO Total Ret C

PIMCO Real Ret C

First Eagle Gold Fund C

Arciterra Note Fund I

Ridgewood Q Fund

NetREIT Common

NetREIT Preferred

Waveland NPIII-B

Ridgewood R Fund

LAEROC 2005-06 Inc Fund

AIM Energy Fund C

MPF Flagship Fund 11

Cypress Equip Fund XI

Ridgewood S Fund

AmREIT MIG-III

Waveland DP06-A

CNL A&L Sr. Housing

Cypress Inc Fund III

Odyssey Oper Partner II

DBSI Land Oppor Fund

Alliance APC-2006B

Odyssey Residential II

Waveland DP-06B

CNL Lifestyle Prop

United Devel Fund III

Waveland DP-05B

Atlas Energy Public 17-2007A

AIM/Invesco Gold & Prec Mtl

AIM/Invesco Gold & Prec Mtl

The claim seeks damages between $500,000 and $1,000,000.

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.

The financial advisor that handled the account at issue is named John Towers.  According to his FINRA Broker Report (CRD) it appears that John Towers worked in VSR Financial's Plano, Texas office from June 2002 until December 2013.  It also appears that in December 2013, Mr. Towers was suspended from the securities industry by FINRA for allegedly recommending that a married couple invest in high-risk private placements and real estate investment trusts.  Mr. Towers' CRD also indicates that he has been the subject of eleven (11) customer complaints.

When asked about the claim, D. Daxton White, the firm's managing partner, stated "This claim bears striking similarities to other claims we have filed against VSR involving this particular financial advisor."

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.