Another FINRA Arbitration Filed Against VSR Financial Over Alternative Investment Losses

DALLAS - Feb. 3, 2014 - PRLog -- 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 2005 A

Alliance Petroleum Corp 2005 B

Alliance Petroleum Corp 2006 B

Bradford Drilling Associates 21, LP

Bradford Drilling Associates 26, LP

Cypress Equipment Fund 13

Cypress Equipment Fund X

Florida Capital Investment Partners 2005, Ltd

MacKenzie Patterson Flagship Fund 10, LLC

Mewbourne Energy Partners 05-A, L.P.

Mewbourne Energy Partners 06-A, L.P.

Mewbourne Energy Partners 07-A, L.P.

Mewbourne Energy Partners 08-A, L.P.

Mewbourne Energy Partners 09-A, L.P.

Mewbourne Energy Partners 10-A, L.P.

NetREIT Common

Odyssey Operating Partnership II, Ltd

Ridgewood Energy N Fund

Ridgewood Energy O Fund

Ridgewood Energy P Fund

Ridgewood Energy Q Fund

Waveland Drilling Partners 2006-A

Waveland Drilling Partners 2007-A, L.P.

Waveland Drilling Partners, LLC

Cole Credit Property Trust, Ltd.

Florida Capital Real Estate Partners 27, Ltd

Triton Pacific Income & Growth

Behringer Harvard Opportunity REIT I

United Development Funding III, LP

Alliance Petroleum Corp 2005 C

Bradford Drilling Associates 19, LP

CNL Retirement Properties, Inc.

Dubose Model Home Income Fund 4

CNL Lifestyle Properties, Inc.

Winton Futures Fund

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.