VFG Securities Inc. and Jason Vanclef—Distribution of Misleading Literature to Promote Investments in Non-traded Direct Participation Programs

investment fraud attorney ClevelandJason Vanclef and VFG Securities, Inc. Allegedly Distributed Book The Wealth Code to Promote Non-traded Direct Participation Programs and Non-traded REITs

Jason Vanclef and VFG Securities, Inc., between September 22, 2009, and January 21, 2013, allegedly distributed a first edition of the book The Wealth Code to promote non-traded direct participation programs and non-traded REITs, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.

Jason Vanclef purportedly wrote and published The Wealth Code: How the Rich Stay Rich in Good Times and Bad himself and the book has been available for purchase via online retailers such as Amazon, according to the aforementioned Complaint.

Vanclef also allegedly used The Wealth Code to purportedly entice investors to put money in VFG, the Complaint reports.

The Complaint further alleges that, between approximately November 2010 and June 2012, 95 percent of VFG’s revenue was produced from sales of non-traded DPP’s and non-traded REIT’s.

The story continues that Vanclef allegedly used VFG events to give out The Wealth Code in person, a book which also allegedly makes repeated claims that non-traded DPPs and non-traded REITs offer big returns and capital preservation, the Complaint notes.

The Complaint also alleges that the aforementioned claim was “inaccurate and misleading” and went against the information given in the prospectuses for the investment instruments Vanclef and VFG sold.

What is more, Vanclef also allegedly put forth in The Wealth Code that an individual investing in so-called “real” or “tangible” assets and other instruments that he recommended could “reasonably achieve 8-12% results” and “get consistent returns” that provided “piece [sic] of mind”, the Complaint also notes.

FINRA also notes that non-traded DPPs and non-traded REITs are speculative investments that contain a high degree of risk, including the risk that an investor may lose a substantial portion or all of his or her initial investment.

The Peiffer Rosca Wolf securities lawyers are investigating Jason Vanclef and VFG Securities, Inc.’s alleged use of literature to mislead investors.

VFG Securities, Inc. Censured and Fined $50,000 and Jason Vanclef Suspended and Fined $10,000 by FINRA for Allegedly Making Unwarranted Claims to Investors

VFG Securities, Inc. was censured and fined $50,000 and Jason Vanclef was suspended and fined $10,000 by FINRA for allegedly making unwarranted claims to potential investors, according to a Complaint from FINRA’s Department of Enforcement presently being examined by attorneys Alan Rosca and James Booker

NASD Rules require that firms such as VFG submit literature to FINRA’s Advertising Department, the Complaint reports.

VFG allegedly did not have The Wealth Code approved and did not have a registered principal at VFG review or approve it as sales literature, the Complaint notes.

What is more, VFG and Vanclef also took part in distributing spreadsheets to four customers that allegedly held false and misleading liquidity timelines for non-traded DPPs and non-traded REITs, the Complaint also reports.

Said spread sheets also allegedly made misleading points which characterized distributions from non-traded DPPs and non-traded REITs as so-called “income” and also improperly made projections of performance of the recommended non-traded DPPs and non-traded REITs, the Complaint also notes.

FINRA’s Department of Enforcement then details how VFG’s supervisory systems, including its written supervisory procedures, were allegedly inadequate in two regards, the Complaint reports.

The first regard involved VFG and Vanclef allegedly giving consolidated investment reports while meeting with customers to talk about their investments, yet VFG allegedly failed to supervise the content of said reports to make sure that customers got the most recent  valuations for the non-traded REITs and non-traded DPPs that they had purchased, the Complaint notes.

Next, VFG allegedly failed to properly and reasonably supervise illiquid alternative investments, involving non-traded DPPs and non-traded REITs, to make sure that customers taking advice from VFG and Vanclef did not become too loaded in illiquid securities, the Complaint also states.

VFG, based on the foregoing alleged conduct, violated NASD and FINRA Rules and hence VFG Securities, Inc. was censured and fined $50,000 and Jason Vanclef was suspended and fined $10,000 by FINRA, the Complaint reports.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of distribution of misleading sales literature and are currently investigating VFG Securities Inc. and Jason Vanclef’s alleged distribution of allegedly misleading sales literature to promote VFG investments. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of VFG Securities Inc. and Jason Vanclef’s alleged distribution of allegedly misleading sales literature to promote VFG investments may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1163 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.