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million through their insurance company to settle a negligence case filed by249 customers. The customers had claimed the Overland Park-based company was negligenty in supervising two former brokers whosold high-risk investmentzs in several Florida-based companies. The Rebecca Engle and Brian Schuster, were charged with eight count each of securities fraud by Nebrasks onMay 11. VSR Financial owners and founders J. Michael Stanfielfd and Donald Beary consented tothe $10.3 milliomn settlement before an arbitration panel from the on May 8, the authoritt said in a release Wednesday. also CEO of VSR said in an interview Thursday that he and Beary did not admit toany wrongdoing.
Stanfield said part of the agreementt was that the plaintiffs agreed not to collecty the settlement from Stanfield and but instead will try to collect payment fromthe company’s and officers’ insurance provider. Englde worked at VSR as a representative for aboutg nine months in 2006and 2007. Engl lost her Nebraska securities license in 2008 as part of an agreementr she entered into withstate regulators. Schuster was a formet business partnerof Engle’s and never workexd directly for VSR.
“These investments were sold through CapitalGrowth Financial, a Florida broker dealer that is no longef in business, about three or four years before they were involvex with us,” Stanfield said. Stanfield said that no claimss remain against VSR Financial orits executives. The Financialo Industry Regulatory Authority callds itself the largest independent regulator for securitiea firms doing business in the United It was created in July 2007 through the consolidation of the and themembet regulation, enforcement and arbitration functions of the .
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