Current Investigations | Rex Securities Law

If you would like to research a particular broker, investment product or a brokerage firm, please go to our Investment Loss Recovery BLOG and input the name of the broker, company or particular investment in the "Search" box at the top right hand corner of that page. 

From time to time various products, firms and/or individuals become the subject of investigations that we conduct on behalf of our clients as a part of our effort to recover their investment lossesIf you have information related to these investigations, we would appreciate hearing from you. 



The list below is only a partial list of the ongoing and prior investigations we have been or are currently involved with.  Our Investment Loss Recovery BLOG is updated several times a week with information about FINRA/SEC and state securities regulator disciplinary actions as well as specific investment products that are the subject of current litigation or that are currently being investigated.

Call us at 561 391 1900--The Old Fashioned way to communicate is still an option.
Of course, we always suggest that you call our office to speak with an experienced securities attorney for a no charge consultation, if you have questions about your legal options for recovery of investment losses.


Brokerage Firms
LPL Financial LLC (REIT Sales) UPDATE: On February 6, 2013,  LPL Financial settled the case brought by Massachusetts securities regulators for improper sales of real estate investment trusts. For more details visit our blog.

VSR Financial Services, Inc. -Fined $550,000 by FINRA in connection with the sale of alternative investments and private placements in May 2013. We have filed four arbitration claims on behalf of retirees in Florida and Texas against VSR Financial brokers during 2014 seeking recovery of damages for the sale of unsuitable alternative investments. 

Stock Brokers

Robin Bruce Davidson
James Allen Hall-Orlando FL-Orion Investment Advisors-January 2014 
Jason T. Knapp (formerly with Dawson James Securities)
Wade J. Lawrence (formerly with Southwest Securities/Oppenheimer-Dallas/Fort Worth)
M.F. (Mickey) Long II-  (VSR Financial Services)
Stuart "Stu" L. Pearl
Richard Patrick Sandru (also known as Rick Sandru)- formerly with LPL Financial & Cambridge Investment Research-SEC Final Order entered August 2013
Clyde M. Thornburg
John H. Towers ( formerly with VSR Financial Services) UPDATED January 28, 2014 
Dennis Van Patter (VSR Financial Services-First Financial Services Group)
Heidi Marika Wivolin (NEXT Financial Group/ 1st Discount Brokerage) Updated February 6, 2014 Seuraa linkkiä suomalaiseen käännökseen


Exchange-Traded Funds & Notes
Exchange Traded Funds (ETFs) Purchased from Citigroup
Exchange Traded Funds (ETFs) Purchased from Morgan Stanley
Exchange Traded Funds (ETFs) Purchased from UBS
Exchange Traded Funds (ETFs) Purchased from Wells Fargo
TVIX (VelocityShares 2x long VIX Short Term ETN)

Fixed Income

Bryn Mawr II CLO (Collateralized Loan Obligation)
GWG Renewable Secured Debentures
Hartford Floating Rate Fund
Lehman Structured Products (Principal Protected Notes)

Lexington Captial Funding III CDO
Lyon Capital Management VII CLO
UBS Puerto Rico Bond Funds 

Hedge Funds
UBS Willow Fund LLC

Limited Partnerships
Atlas Resources Limited Partnerships (16,17,18,23,24)
Lease Equity Appreciation Fund II & III L.P.
Oppenheimer Global Resource Private Equity Fund LP
Reef Oil & Gas Investments (numerous products including Drilling Programs, Energy Funds)
Rockies Region 2006 & 2007 Limited Partnerships
United Development Funding - FEBRUARY 2016 - FBI raids offices of United Development Funding

Public Non-Traded REITs
A REIT (real estate investment trust) is an entity that owns income producing real estate. While some REITs trade on conventional securities exchanges, "non-traded" REITs are not listed and do not trade on any national securities exchange. As many investors have learned,  this lack of liquidity can be tough to deal with if cash is needed for health and living expenses. FINRA has posted an Alert on their website warning investors of the risks associated with non-traded REITs.

Note regarding Value on Non-Traded REITs: Since these investments do not trade on an exchange, valuing the investment is difficult, if not impossible. FINRA requires that the company provide an estimated valuation of the shares within 18 months after cessation of the offering. Investors should be wary that estimated value does not always accurately reflect fair market value; ie, the amount an investor could expect to receive if the investment were liquidated immediately. The only market for most of these investments is one of the privately operated secondary markets where selling prices are often discounted 30% or more from the estimated value. See this blog article for more information on secondary markets for non-traded REITs. For example, one of the popular non-traded REITs which sold originally for $10 a share currently has an estimated value of about $5. Recent bids received from a few secondary market makers were in the range of $1.90.

Behringer Harvard Short Term Opportunity Fund I LP
Behringer Harvard Opportunity REIT I, Inc.
Behringer Harvard Strategic Opportunity Fund I (aug 2012)
Cole Credit Property Trust II, Inc. (Cole REIT II)
Cornerstone Core Properties REIT, Inc. 

David Lerner & Associates, Apple REITs (Six, Seven, Eight, Nine and Ten)
Healthcare Trust of America, Inc. REIT
Hines REIT
Inland American REIT
Inland Western Retail Real Estate (now called Retail Properties of America)

KBS REIT I (KBS Real Estate Investment Trust, Inc.)
Retail Properties of America (formerly Inland Western Retail Real Estate)
Wells Timberland REIT ( fair market value reduced December 2012)

Life Insurance Products (Variable Life, Variable Universal Life, VUL)


Private Placement Offerings (Reg D)
Bluerock Real Estate, BR Senior Secured Debenture Trust, LLC
Bradford Drilling Associates LPs (Series XV through XXXII) 
Cawley Fund 1, LLC Secured Note
CIP Leveraged Fund Advisors, LLC
Cypress Equipment Leasing Funds
Domin-8 Enterprise Solutions
DBSI Investments
Grubb & Ellis Capital Fund I
LaeRoc Income Funds
Layton Energy Wharton LP
Mewbourne Energy Partners Drilling Programs
Penneco Drilling Associates
Ridgewood Energy Funds (Series I through Z )

Tenant In Common , TIC, 1031 Exchanges
Partial list of broker dealers that sold Tenant in Common investments
DBSI Tenant in Common Investments, TICs, 1031 Exchanges, Master Lease
TIC Investments Sponsored by Direct Invest

FINRA Broker Check-Review Your Broker's Background
FINRA maintains a data base containing the employment history, educational history, licensing history, regulatory issues and customer complaints for every licensed broker and brokerage firm in the country. Investors would be wise to review the record of their current or potential new broker. These public records may accessed on the FINRA BrokerCheck website.


Robert H. Rex, Esq.
Rex Securities Law
Dickenson Murphy Rex & Sloan

Florida Office:
250 NW 4th Diagonal
Boca Raton FL 33432

Texas Office: 
12600 Hill Country Blvd., Suite R-275
Austin, TX, 78738

Toll free: 877-224-3199

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