February 2017-Plano, Texas
According to public records former VSR Financial Services broker Dennis Van Patter discloses a prior final regulatory event, 7 prior customer disputes that are final and 3 pending customer disputes.
Five of the prior customer disputes were brought by Van Patter’s customers while he was employed by VSR Financial Services and allege damages related to investments in real estate investment trusts (REITs), oil and gas, equipment leasing and promissory notes (alternative investments). Settlements paid by VSR Financial in those five cases are $40,000, $215,000, $11,250, $50,000 and $15,000.
The three pending cases against Van Patter are by customers of VSR Financial and relate to alternative investments such as REITs, oil and gas and equipment leasing. Damages sought in the two of the pending cases are not stated. Damages sought in the third case are $1,074,858.
In November of 2015 FINRA suspended Van Patter for 45 days and fined him $10,000. Without admitting or denying the findings, Van Patter consented to the entry of findings that his recommendation that a retired customer invest in alternative investments was not suitable in light of the customer’s investment objectives and risk tolerance. The findings stated that Van Patter recommended that the customer invest $1.6 million in alternative investments such as REITs, note programs, oil and gas drilling partnerships and other private placements. As a result of Van Patter’s recommendations, the customer had approximately 52% of his liquid net worth concentrated in high risk alternative investments. FINRA Case 2013036647401.
VSR Financial’s Prior Issues with Alternative Investments
VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments. In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers. During the summer of 2016, VSR Financial announced that they were winding down their brokerage business and transferring accounts and brokers to an affiliated entity Summit Brokerage Services.
Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.
Van Patter was employed by VSR FInancial Services from 10/1997-7/2016. He is not currently registered with any broker dealer.
If you have losses in an account in an account handled by Dennis Van Patter or another VSR Financial Services broker, contact us to discuss how you may be able to recover damages for those losses.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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