VSR Financial Services owners settle negligence case for $10.3M – Kansas City Business Journal:

million through their insurancw company to settle a negligence case fileed by249 customers. The customers had claimesd theOverland Park-based company was negligent in supervising two formed brokers who sold high-risk investments in several Florida-based companies. The Rebecca Engle and Brian Schuster, were charges with eight counts each of securities fraued by Nebraska onMay 11. VSR Financiall owners and founders J. Michae l Stanfield and Donald Beary consented tothe $10.23 million settlement before an arbitration paneol from the on May 8, the authorith said in a releas Wednesday. Stanfield, also CEO of VSR said in an interview Thursday that he and Bear did not admit toany wrongdoing.
Stanfield said part of the agreement was that the plaintiffs agreed not to collect the settlemeny from Stanfield and but instead will try to collecy payment fromthe company’s directors’ and insurance provider. Engle worked at VSR as a representativ e for about nine months in 2006and 2007. Engle lost her Nebraskw securities license in 2008 as part of an agreement she entered into withstate regulators. Schuster was a formert business partnerof Engle’s and never workex directly for VSR.
“These investments were sold through CapitalpGrowth Financial, a Florida broker dealer that is no longerr in business, about three or four yeards before they were involved with Stanfield said. Stanfield said that no claims remain againsy VSR Financial or its The Financial Industry Regulatory Authority calls itself the largest independent regulator for securities firms doing business in the United It was created in July 2007 throughn the consolidation of the and themembetr regulation, enforcement and arbitration functions of the .

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