• November 9, 2021
• Private Client Services

Customer Complaint Pending Against Private Client Services Financial Advisor Steven Vander Velde After Alternative Investments Loss

Steven Vander Velde (CRD#: 5493806) is a dually registered Broker and Investment Advisor at Private Client Services, LLC in Flower Mound, TX and Prime Capital Investment Advisors, LLC in Dallas, TX.

Broker’s Background

He entered the securities industry in 2008 and previously worked for Lawing Financial, Inc.; Cambridge Investment Research, Inc.; and AXA Advisors, LLC.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, a customer dispute was filed against Steven Vander Velde, requesting damages of $300,000. The allegation states, “Client alleges the FP recommended the purchase of several high-risk alternative investments which were not suitable giving her investment objective and risk tolerance.” The customer dispute remains pending.

 

In addition, Steven Vander Velde has been the subject of three disclosure, including the following:

 

• September 2013–A compromise direct payment procedure was disclosed.
• September 2013–A compromise direct payment procedure was disclosed.
• April 1997–”1. COUNT I: THEFT BY CHECK OVER $20.00 UNDER $500.00. 2. MISDEMEANOR. 3. NO PLEA, CHARGE WAIVED. 4. NON-INVESTMENT RELATED. 1. COUNT II: ISSUANCE OF A BAD CHECK. 2. MISDEMEANOR. 3. GUILTY. 4. NON-INVESTMENT RELATED.” The misdemeanor charge on count 1 was waived, and Steven Vander Velde was convicted on count 2; he was ordered to pay a fine of $100.

 

For a copy of Steven Vander Velde’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Alternative investments are not regulated by the U.S. Securities and Exchange Commission (SEC), and are often subject to fraud and other schemes. Examples include commodities, hedge funds, real estate, derivatives contracts, private equity, managed futures, and venture capital. They are not typically regulated by the SEC, nor are they usually liquid or easy to value, which makes them risky investments. In addition, alternative investments are often open only to accredited investors with an income of $200,000 or more or a net worth in excess of $1M; they also require high up-front minimums. When these opportunities are opened to non-accredited investors, it may be because of unsuitability, fraud, selling away or misrepresentation, and the investor may incur losses.

 

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the financial advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.