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million through their insurance compant to settle a negligence case filed by249 customers. The customers had claime the Overland Park-based company was negligenrt in supervising two formed brokers whosold high-risk investments in several Florida-baseds companies. The brokers, Rebecca Engle and Brian were charged with eight countxs each of securities fraud by Nebrasksa onMay 11. VSR Financial owners and founderz J. Michael Stanfield and Donald Beary consented tothe $10.3 million settlement before an arbitrationh panel from the on May 8, the authority said in a releas Wednesday.
Stanfield, also CEO of VSR Financial, said in an interview Thursday that he and Beary did not admit to any Stanfield said part of the agreement was that the plaintiffsx agreed not to collec t the settlement from Stanfield and but instead will try to collecg payment fromthe company’s and officers’ insurance provider. Engle worked at VSR as a representatived for about nine months in 2006and 2007. Engld lost her Nebraska securities license in 2008 as part of an agreemengt she entered into withstate regulators. Schuste was a former business partnerof Engle’as and never worked directly for VSR.
“These investments were sold through CapitalGrowtj Financial, a Florida broker dealer that is no longetr in business, about three or four years before they were involved with us,” Stanfielde said. Stanfield said that no claimsa remain against VSR Financial or its The Financial Industry Regulatory Authority calls itsel f the largest independent regulatotr for securities firms doing businesse in theUnited States. It was created in July 2007 through the consolidatiobn of the and themember regulation, enforcement and arbitration functions of the .
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