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Written by 10:45 am Blog, Securities Fraud

FINRA Arbitration Filed Against VSR Financial

Edward Beyn Churning Losses, Featured by Top Securities Fraud Attorneys, The White Law Group

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):

Alliance Petroleum Corp 2005 C
ArciTerra Strategic Retail Echelon
ArciTerra Whitefish Opportunity Fund, LLC
Atlas America Public #18 – 2008-A Ltd
Atlas America Series #21-A Ltd
Atlas America Series #22 – 2002 Ltd
Black Diamond Energy Partners 2004 – B, Ltd.
Black Diamond Energy Partners 2007 – A, Ltd.
Bradford Drilling Associates 17, LP
Bradford Drilling Associates 21, LP
Bradford Drilling Associates 24, LP
Bradford Drilling Associates 25, LP
Bradford Drilling Associates 29, LP
Mewbourne Energy Partners 03-A, L.P.
Mewbourne Energy Partners 04-A, L.P.
Mewbourne Energy Partners 05-A, L.P.
Mewbourne Energy Partners 09-A, L.P.
Mewbourne Energy Partners 11-A, L.P.
Penneco Drilling Associates 2004-A
Penneco Drilling Associates 2007-A
Reef Income & Development Fund 3
Reef SWD 2007 – A, LP
Waveland Drilling Partners 2007-A, L.P.
Waveland North Paradigm III – B Partners
ArciTerra Strategic Retail Trinity Place
NetREIT Common
Waveland Vanguard Partners, LLC
Waveland Resource Partners 1, L.P.
Waveland Drilling Partners 2007-A, L.P.
Cypress Income Fund V 8.25% Note
Cypress Income Fund 8 8.25% Note
Cypress Income Fund 11
Cole Credit Property Trust II, Ltd.
United Development Funding III
UDF Land Opportunity Fund Investors, LLC
Florida Capital Real Estate Partners 28, Ltd
NetREIT
ArciTerra Note Fund II, LLC
Mewbourne Energy Partners 08-A, L.P.
Mewbourne Energy Partners 10-A, L.P.
Mewbourne Energy Partners 11-A, L.P.
Mewbourne Energy Partners 12-A, L.P.
Mewbourne Energy Partners 13-A, L.P.
Reef SWD 2007 – A, LP
Behringer Harvard Multifamily REIT I, Inc.
Odyssey Diversified Notes VII
FS Energy & Power Fund
Reef SWD 2007 – A, LP
Neomatrix
Bradford Drilling Associates 19, LP
Waveland Resource Partners 1, L.P.
Waveland Resource Partners 2, L.P.
Alliance Petroleum Corp 2004 A
Alliance Petroleum Corp 2005 B
Atlas America Public #14 – 2004 Ltd
ICON Income Fund 9
Bradford Drilling Associates 19, LP
Bradford Drilling Associates 21, LP
Bradford Drilling Associates 24, LP
Bradford Drilling Associates 25, LP
Behringer Harvard Opportunity REIT I, Inc.
Black Diamond Energy Partners 2004 – B, Ltd
Ridgewood Energy N Fund
Ridgewood Energy O Fund
Ridgewood Energy P Fund
Ridgewood Energy R Fund
United Development Funding III
Mewbourne Energy Partners 03-A, L.P.
Mewbourne Energy Partners 04-A, L.P.
Mewbourne Energy Partners 05-A, L.P.
Mewbourne Energy Partners 06-A, L.P.
Mewbourne Energy Partners 07-A, L.P.
Mewbourne Energy Partners 09-A, L.P.
Ridgewood Energy N Fund
Ridgewood Energy O Fund
Ridgewood Energy P Fund
Ridgewood Energy Q Fund
Atlas America Public #14 – 2004 Ltd
Bradford Drilling Associates 19, LP
Bradford Drilling Associates 23, LP
Bradford Drilling Associates 24, LP
Bradford Drilling Associates 25, LP
Alliance Petroleum Corp 2005 A
Alliance Petroleum Corp 2005 B
Alliance Petroleum Corp 2006 B
Odyssey Residential Realty II, LLC 9% Note
CNL Lifestyle Properties, Inc.
Waveland Drilling Partners 2006-B, L.P.
Waveland Drilling Partners 2007-A, L.P.
Penneco Drilling Associates 2004-1
Mewbourne Energy Partners 10-A, L.P.
Mewbourne Energy Partners 11-A, L.P.
Mewbourne Energy Partners 12-A, L.P.
Mewbourne Energy Partners 08-A, L.P.
Mewbourne Energy Partners 09-A, L.P.
Mewbourne Energy Partners 05-A, L.P.
Mewbourne Energy Partners 06-A, L.P.
CNL Retirement Properties, Inc
Waveland Vesta Medical, LLC
ArciTerra Strategic Retail II, LLC
Gentry Mills Capital (GMI – ES 14, LP)
ArciTerra Real Estate Investment Trust, Inc.
Cypress Income Fund 10 8.25% Note
DBSI 2006 Land Opportunity Fund, LLC
Florida Capital Real Estate Partners 27, Ltd
NetREIT Common
Odyssey Operating Partnership II, Ltd
Reef SWD 2007 – A, LP
Waveland Vanguard Partners, LLC
Waveland Vesta Medical, LLC
Waveland Resource Partners 1, L.P.
Alliance Petroleum Corp 2006 A
Atlas America Series #26 – 2005 Ltd
Bradford Drilling Associates 19, LP
Mewbourne Energy Partners 08-A, L.P.
Mewbourne Energy Partners 12-A, L.P.
Waveland Drilling Partners 2007-A, L.P.
Waveland North Paradigm III – B Partners
GMI-ES 14 LP
United Development Funding III
Frontier Masters Series 1
KBS Strategic Opportunity REIT
United Develop Fund Land Op LP
Frontier Diversified Series 1
ArctTerra REIT Inc.
Behringer Harvard Multifamily I
NetREIT

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 https://whitesecuritieslaw.com.

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