Mickey Long, of Plano, Texas, a stockbroker with VSR Financial Services, Inc., was suspended by Texas State Securities Board after being found to have made unsuitable investment recommendations of real estate investments and other alternative investments. Order No. REG16-SUS-03 (Oct. 4, 2016).
According to the Order, Long was responsible for advising a seventy-year-old customer who did not wish to have in excess of twenty percent of the customer’s assets invested in the highest risk investments offered through the firm. Apparently, Long ignored the customer’s instructions, and made recommendations that the customer invest greater than sixty percent in moderate to high risk securities, and more than twenty percent of the customer’s assets for the highest risk securities.
Apparently, the customer placed nearly thirty-six percent of the assets in the highest risk securities, and in excess of sixty percent in moderate to highest risk securities, which included non-traded real estate investment trusts, and private placements offerings in oil and gas companies. Texas’ State Securities Board found that Long lacked an adequate basis to conclude that it was suitable for the customer to invest beyond the allocations and risk tolerance that the customer asserted. Texas claimed that Long committed inequitable securities sales practices.
In connection with Long’s suspension, Long was prohibited by Texas State Securities Board from engaging in recommendations to investors concerning alternative investments, which included private placement offerings, real estate investment trusts, and business development companies.
FINRA BrokerCheck reveals that Long has been subject to ten customer initiated investment related claims regarding unsuitability. On July 17, 1997, Long settled a customer dispute for $15,400.00 in damages after the customer alleged that Long made unsuitable investment recommendations. On July 1, 1999, Long settled a customer dispute for $63,000.00 in damages after the customer alleged that investments the customers purchased were not suitable.
On July 4, 2000, Long settled a customer dispute for $65,000.00 amid allegations that the customer failed to supervise a registered representative, committed negligence, and committed other violations of securities laws. On May 12, 2008, a customer lodged a dispute against Long, asserting that the customer’s investments were not suitable.
On May 20, 2010, Long became subject to a customer dispute, in which the customer requested $100,000.00 in damages per allegations Long of making misrepresentations to the customer regarding investments. On April 7, 2011, Long settled a customer dispute for $235,000.00 in damages after the customer alleged that Long breached his fiduciary duty and contractual obligations to the customer, and committed negligence.
On May 7, 2015, Long settled a customer dispute for $82,500.00 in damages after the customer alleged that Long committed negligence, breached his fiduciary duty to the customer, made misrepresentations and engaged in unsuitable investment recommendations. On October 15, 2015, a customer lodged a dispute against Long, in which the customer requested $6,315.69 in damages after claiming that Long misrepresented a variable annuity.
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