{"id":3957,"date":"2016-11-22T19:36:18","date_gmt":"2016-11-23T01:36:18","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/?p=3957"},"modified":"2022-03-28T11:14:42","modified_gmt":"2022-03-28T16:14:42","slug":"securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/","title":{"rendered":"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence"},"content":{"rendered":"<p><strong>Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments<\/strong><\/p>\n<p>Jason Vanclef and his brokerage firm VFG Securities Inc. have settled the Financial Industry Regulatory Authority\u2019s case accusing them of not adequately supervising their brokers so that clients\u2019 portfolios did not end up concentrated in illiquid investments. Vanclef and VFG Securities, however, are not denying or admitting to the claims made in the complaint.<\/p>\n<p>According to FINRA, from 11\/2010 to 6\/2012, nearly 95% of the broker-dealer\u2019s revenue came from direct participation programs (DPP) and <a href=\"https:\/\/www.stockbroker-fraud.com\">nontraded real estate investment trusts <\/a>(nontraded REIT) sales. The illiquid investments were sold retail customers.<\/p>\n<p>FINRA claimed that Vanclef had used \u201cThe Wealth Code,\u201d which was the book that he authored, as a sales tool to promote investing in DPPs and <a href=\"https:\/\/www.stockbroker-fraud.com\">nontraded REITs <\/a>and to attract potential investors. The settlement with the regulator notes that in the book Vanclef repeatedly touted both types of illiquid investments as offering capital preservation and better returns\u2014claims that FINRA said are \u201cinaccurate and misleading\u201d and conflict with information that the firm offered in prospectuses for the nontraded REITs and DPPs.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/#more-3957\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments Jason Vanclef and his brokerage firm VFG Securities Inc. have settled the Financial Industry Regulatory Authority\u2019s case accusing them of not adequately supervising their brokers so that clients\u2019 portfolios did not end up concentrated in illiquid investments. Vanclef and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4014,3760,3741],"tags":[3474,3588,2644],"class_list":["post-3957","post","type-post","status-publish","format-standard","hentry","category-non-traded-reits","category-sec-enforcement","category-securities-fraud","tag-direct-participation-programs","tag-vfg-securities","tag-william-galvin"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence &#8212; Investor Lawyers Blog &#8212; November 22, 2016<\/title>\n<meta name=\"description\" content=\"Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments Jason Vanclef and his brokerage firm &#8212; November 22, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence &#8212; Investor Lawyers Blog &#8212; November 22, 2016\" \/>\n<meta name=\"twitter:description\" content=\"Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments Jason Vanclef and his brokerage firm &#8212; November 22, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence &#8212; Investor Lawyers Blog &#8212; November 22, 2016","description":"Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments Jason Vanclef and his brokerage firm &#8212; November 22, 2016","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/","twitter_card":"summary_large_image","twitter_title":"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence &#8212; Investor Lawyers Blog &#8212; November 22, 2016","twitter_description":"Broker-Dealer Owner and His Firm Settle SEC Case Alleging Overconcentration of Investor Money In Illiquid Investments Jason Vanclef and his brokerage firm &#8212; November 22, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence","datePublished":"2016-11-23T01:36:18+00:00","dateModified":"2022-03-28T16:14:42+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/"},"wordCount":731,"keywords":["Direct Participation Programs","VFG Securities","William Galvin"],"articleSection":["Non-Traded REITs","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-vfg-securities-settles-finra-nontraded-reit-sales-massachusetts-seeks-ban-trader-software-company-utah-man-bilked-5700-25m-fraud-gets-p\/","name":"Securities Fraud Cases: VFG Securities Settles With FINRA Over Nontraded REIT Sales, Massachusetts Seeks To Ban Trader and His Software Company, and Utah Man Who Bilked Over 5,700 in $25M Fraud Gets Prison Sentence &#8212; 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