In complaint, regulator says that almost 95% of VFG Securities' revenues were generated from nontraded REITs and other direct participation programs. B-D owner claims he is the victim of “character assassination."
The firm could create its own REIT sponsor and wholesaler or take a run at an established one like NorthStar Asset Management Group Inc.
Source says firm eyes creating, managing nontraded REITs for brokers and advisers to sell.
RCS was recently closed after paying Massachusetts $3 million to settle charges that it fraudulently rounded up proxy votes for real estate deals.
Firm agreed to leave more than 40 senior staffers alone until September or until RCS Capital's bankruptcy plan becomes effective.
Sales at the once-tarnished company are up fourfold this year while sales in the overall industry are down.
Firms need to be proactive in conveying information to their advisers.
Scan of recent orders and reports from SEC, Finra shows the advice industry is already feeling the effects of fiduciary.
Regulator said he failed to tell Native American tribe about fees.
Three independent broker-dealers formerly operating under AIG's umbrella have been fined $7.5 million and ordered to pay restitution of $2 million to clients.
