FINRA BrokerCheck reveals that former VSR Financial Services, Inc. broker Charles Eugene Chapman has been the subject of three customer complaints relating to sale of alternative investments, including real estate related private placements. Chapman operated CH Wealth Management, L.L.C. and Chapman, Hext & Co., P.C. out of Richardson, Texas.
As reported by Investment News, one of the complaints involved the sale of a DBSI investment. Specifically, customer Gordon McLendon, Jr. alleged in a filing in Dallas County district court that Charles Chapman and VSR Financial “failed to conduct proper due diligence associated with VSR before recommending and causing plaintiffs to make investments with VSR, including the DBSI investment.” Apparently, Mr. McLendon invested a total of $7.1 million in various alternative investments such as private placements and nontraded real estate investment trusts.
Chapman was a registered representative of VSR from August 1999 to June 2009. He then became a registered representative of Berthel, Fisher & Company Financial Services, Inc. from June 2009 to June 2013. He has since left the securities industry.
Other brokers registered with VSR that have previously been the subject of FINRA fines and suspensions include: Steven Stahler, Dennis Van Patter, John Howard Towers, Michael Dan Shaw, Kevin Nevin, Paul Larsen, and Quentin Silic. VSR itself consented to a fine by FINRA relating to allegations that it failed to adequately supervise brokers relating to the sale of alternative investments.
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