Cetera Financial Group subsidiary VSR Financial Services, Inc. (CRD# 14503) is winding down and transferring some of its brokers to other Cetera Financial Group broker-dealers.
VSR is one of Cetera Financial Group’s (“Cetera”) many independent brokerage firms. Cetera was acquired by Nicholas “Nick” Schorsch’s RCS Capital in 2014 in an acquisition spree used to create a selling network for RCS Capital’s products, including numerous business development companies (“BDCs”) and non-traded REITs. Many of Cetera’s brokerage firms operate under Cetera Advisor Networks, LLC (CRD# 13572), a list of which can be found here.
According to some sources, the move is part of an ongoing plan to evade RCS Capital’s poor reputation. VSR will be the second firm under the Cetera umbrella to be shut down if it can beat Investors Capital Corp. (CRD# 30613), which is also part of Cetera’s Financial Group and expected to also be closed or consolidated in the coming months. J.P. Turner & Company, L.L.C. (CRD# 43177), shuttered in 2015, was the first Cetera subsidiary broker-dealer to close.
Some of Cetera’s firms, including VSR and JP Turner, are known for their sales of alternative investments such as non-traded REITs, BDCs, private placements, and promissory notes. Just this month, FINRA sanctioned VSR $400,000 for misconduct surrounding the sale of L-share Variable Annuities (hyperlink). In 2013, FINRA sanctioned VSR $550,000 for failing to supervise the sale of alternative investments and, consequently, overconcentrating customers’ accounts with these investments.
Further, many brokers VSR employs have also been subject to multiple FINRA BrokerCheck report disclosures. This includes M F “Mickey” Long II (CRD# 1778299), Dennis Van Patter (CRD# 1364583), John H. Towers (CRD# 700221), and Keith A. Bradley (CRD# 868141).
Just because Investors Capital Corp. and VSR are closing does not mean you are not able to recover from these firms. The same holds true for the now-closed JP Turner. Aggrieved investors can still recover their money lost through unsuitable recommendations, overconcentration, failure to supervise, and other forms of broker and brokerage firm misconduct by Cetera.
Our lawyers are experienced and seasoned veterans when it comes to securities litigation, guiding hundreds of clients through the FINRA arbitration process and winning millions of dollars for them.
If you invested with any of the aforementioned brokers, with VSR Financial Services, Investors Capital Corp., or J.P. Turner & Co. and have sustained losses, you may be entitled to recover some of your investment losses. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.