Firms file additional claims

NAPLES — In a claim filed last week, two law firms allege that former VSR Financial Services adviser Paul Larsen deceptively sold non-traded REITs and other alternative investments to his clients.

The transactions constitute fraud, a breach of fiduciary duty and a violation to the Florida Securities Act, argue attorneys from Vernon Healy and Dovin Malkin and Ficken, who filed the claim.

According to a release from the law firms, Larsen met with a retired couple in Fort Myers who gave him the bulk of their retirement nest egg to invest in low-risk, income-producing investments. Larsen invested their money into non-traded REITs, including the KBS REIT I and Inland Western REIT, which have since lost about 30% to 50% of their value. These REITs have also suspended or reduced their distribution payments.