Yet Another FINRA Arbitration Filed Against VSR Financial Over Alternative Investment Losses

PLANO, Texas - March 17, 2015 - PRLog -- The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of an Oklahoma investor 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 client in the following alternative and high risk investments (among others):

Reef Oil & Gas
Waveland Vanguard Partners, LLC
Bradford Drilling Associates 24, LP
Cypress Income Fund 5
Penneco Drilling Associates
Atlas Resources 16
NetREIT

The claim seeks damages between $500,000 and $800,000.

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 twenty (20) 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.