Another FINRA Arbitration Filed Against VSR Financial Over Alternative Investment Losses

PLANO, Texas - Nov. 7, 2014 - PRLog -- The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of four 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 alternative and high risk investments (among others):

Alliance Petroleum 2004 A

Atlas America Series 20 Ltd

Atlas America Series 21A LP

Atlas Public 12

CNL 2003 10% Notes

Cole Collaterized Senior Note

Cole Southwest Opportunity Fund

Cole Desert Palms Power Center

Cole Investment Properties

Cypress Equipment Leasing Fund 9

Dubose Model Home Income Program

F B Energy Fund IV

Fugasity

ICON 8A

ICON 8B

MacFarlan Real Estate Finance I

Laeroc 1998 Income Fund

Laeroc 2000 Income Fund

MacKenzie Patterson Special Fund 5

MacKenzie Patterson Special Fund 6

Metalast

Ridgewood Energy M Fund

Ridgewood Power Growth Fund

Ridgewood Power Trust 4

Ridgewood Renewable Powerbank III

T REIT, Inc.

United Mortgage Trust

WNC Housing Tax Credit Fund VI Series 6

The claim seeks damages in excess of $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 sixteen (16) 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 Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.