Mickey Long Investigation
According to a recent Order, The Texas State Securities Board has recently suspended Mickey Long from the securities industry for allegedly recommending unsuitable investments to a client.
The Texas State Securities Board alleged the following in its Order announcing the suspension:
– While registered as an investment advisor for VSR Financial, Long routinely recommended that VSR’s clients invest in non-listed real estate investment trusts (non-listed REITs) and interests in exploratory drilling programs sold through private offerings.
– VSR categorized these investment products as “alternative investments” and identified risk tolerance levels associated with these products. Non-listed REITs and exploratory drilling programs were designated as “High Risk/Moderate” and “High Risk/Aggressive”, respectively.
– VSR’s policies and procedures effective during the time Respondent was recommending these alternative investments stated that suitability determinations for alternative investments for clients must be primarily based on: the client’s financial status’ the client’s investment experience; the client’s stated investment objectives and their risk tolerance.
– A client of Long and VSR who was seventy years old, had elected within the client’s account opening documents to have no more than 20% allocated to the “Highest Risk/Aggressive” risk tolerance level and no more than 60% allocated to the “Highest Risk/Moderate” risk tolerance level.
– At one time, nearly 36% of the Client’s invested assets were invested in investments at the “Highest Risk/Aggressive” risk tolerance level and nearly 78% of the client’s invested assets were invested in “High Risk/Moderate” risk tolerance or higher.
– Long recommended that the client allocate more than these amounts in alternative investments that fell within the aforementioned risk tolerance levels.
– Long did not have a reasonable basis to believe that the recommendations exceeding the client’s identified risk tolerance concentration levels were suitable for the client.
– The unsuitable recommendations constituted inequitable practices in the sales of securities.
Mickey Long has been suspended from the securities industry.
The Texas State Securities Board has suspended Mickey Long from the securities industry for forty-five days. It is likely that clients will be notified of the suspension shortly.
According to FINRA BrokerCheck, Mickey Long was registered with VSR Financial Services in Plano, Texas from 06/2002 – 07/2016. The BrokerCheck also indicates that Long recently joined Calton & Associates and has been the subject of a number of customer complaints during his time in the securities industry.
The White Law Group is investigating the liability that Mickey Long’s employers may have for any losses sustained by clients. Brokerage firms are required to ensure that their agents are complying with FINRA Rules. Additionally, financial advisors and brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that any recommendation made is suitable for the investor in light of that investor’s age, income, investment experience, net worth, and investment objective.
If a brokerage firm or financial advisor makes an unsuitable investment recommendation, they can be found liable for any resulting losses in a FINRA arbitration claim.
If you suffered losses investing with Mickey Long, the attorneys at The White Law Group may be able to help. For a free consultation, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in FINRA arbitration claims against brokerage firms.
For more information on The White Law Group and it’s representation of investors, visit www.whitesecuritieslaw.com.