John Towers and VSR Financial Investment Losses

The White Law Group announces the filing of another FINRA arbitration claim against VSR Financial involving alternative investments, oil and gas partnerships and non-traded REIT investment losses.

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

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 at least 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.”

Recovery of Investment Losses

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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

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