FINRA’s Department of Enforcement investigated Van Patter’s alleged misconduct and determined he recommended over $1.6 million in risky alternative investments, such as REITS, note programs, oil and gas drilling partnerships, and other private placements to an investor. The investor’s investment objective and risk tolerance was primarily moderate income. Nevertheless, according to FINRA, Van Patter recommended alternative investments that were all described in the offering documents as being “speculative,” “highly speculative,” “highly risky,” and/or involving a “high degree of risk.”
Based upon the foregoing alleged misconduct, FINRA contends Van Patter violated NASD Conduct Rules 2310 and FINRA Rule 2110. Under NASD Conduct Rule 2310, financial advisors are required to recommend suitable investments and investment strategies to their clients (known as the suitability rule). Typically, a claim for unsuitable investments is brought as a form of a negligence claim with the theory: the financial advisor had a duty to recommend suitable investments; the financial advisor breached the duty with unsuitable investments; and the financial advisors unsuitable investments caused the investor damages.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment losses and damages investing with Van Patter through VSR Financial, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact below or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.