FINRA Arbitration Filed Against VSR Financial Over Alternative Investment Losses

PLANO, Texas - Jan. 16, 2014 - PRLog -- The White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim against VSR Financial Services.  The claim seeks to recover alleged losses between $500,000 and $1,000,000.

The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two Texas 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):

Alliance Petroleum Corp 2006 A

Behringer Harvard Opportunity REIT I, Inc.

Black Diamond Energy Partners 2006-A, Ltd

Bradford Drilling Associates 21, LP

CNL Arlington Leawood, Ltd.

Cole Senior Notes IV 8.25%

Cypress Equipment Fund 15

Cypress Equipment Fund X

Cypress Equipment Fund XI

Cypress Equipment Fund XII

DBSI 2006 Land Opportunity Fund, LLC - Preferred

Florida Capital Real Estate Partners 25, Ltd

Florida Capital Real Estate Partners 26, Ltd

MacKenzie Patterson Flagship Fund 11, LLC

NetREIT Common

Oddyssey Operating Partnership II, Ltd

Reef SWD 2007 – A LP

Ridgewood Energy Q Fund

Ridgewood Energy R Fund

Ridgewood Energy S Fund

Ridgewood Energy T Fund

Waveland Drilling Partners 2005-B

Waveland Drilling Partners 2006-A

Waveland Drilling Partners 2006-B, L.P.

Waveland Drilling Partners 2007-A, L.P.

Waveland North Paradigm III – B Partners

Waveland Vanguard Partners, LLC

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.

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.