FINRA Complaint Filed against VFG Securities

Posted on March 2nd, 2016 at 4:25 PM
FINRA Complaint Filed against VFG Securities

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Financial Industry Regulatory Authority Inc. (FINRA) recently filed a complaint against a small broker-dealer that allegedly garnered nearly 95% of its revenue from the sale of nontraded real estate investment trusts in addition to other illiquid investments.

The allegation states that VFG Securities Inc. failed to oversee its brokers in order to ensure that client’s portfolios would not become overly concentrated in said illiquid investments. FINRA further alleges that from November 2010 to June 2012, VFG Securities generated nearly all of its revenue from the sale of nontraded REITs and direct participation programs. In the report Jason Vanclef, owner of VFG Securities, stated that FINRA had been “persecuting” him since they analyzed the firm in 2012.

The FINRA complaint also alleges that Mr. Vanclef used a book he had written titled “The Wealth Code” as sales literature to promote investments in nontraded REITs and direct participation programs. Additionally, the FINRA complaint alleges Mr. Vanclef “repeatedly claimed in ‘The Wealth Code’ that nontraded [direct participation programs] and nontraded REITs offer both high return and capital preservation.” In truth nontraded DPPs and nontraded REITs are speculative investments that contain a high degree of risk. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, FINRA, VFG Securities Inc.

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