Shepherd Smith Edwards and Kantas Is Representing This Claimant in Her Six-Figure FINRA Lawsuit

A retiree from Katy, TX, is suing Great Point Capital and former broker Rene Castro for up to $500,000 following allegedly unsuitable recommendations in risky alternative investments like Versity DST and Empire Village REIT. The FINRA arbitration claim contends that the firm failed to supervise Castro and ignored the investor’s need for capital preservation by overconcentrating her savings in high-commission, illiquid products.

A Katy, TX investor is suing Great Point Capital and its now former broker, Rene Javier Castro, for up to $500,000 over what she is alleging are unsuitable investment recommendations in alternative investments. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this retiree. We are working hard to recoup her losses.

Our Client is a senior investor who entrusted her savings and the assets of her disabled son to the Respondents. Instead of receiving prudent investment advice, Great Point Capital and its broker recommended the following investments that were too risky for her family’s circumstances, preferences, and needs:

• A Versity DST Fund
• Empire Village REIT
• Tasty Brands private placement
• Lodging Opportunity Fund
• E2, a virtual utility company

These investments were from fairly untested entities with short track records. In her FINRA arbitration claim, this retiree is alleging unsuitability, misrepresentations and omissions, overconcentration, negligence, fraud, Regulation Best Interest violations, breach of contract, breach of fiduciary duty, vicarious liability, the failure to supervise, and more. In addition to accusing the Respondents of misrepresenting the risks, including reassuring her that these were relatively safe, this investor claims she was not apprised of the multilayer of fees to which her account would be subject.

Rene Castro is no longer a registered broker or Retirement Wealth Management investment adviser. His BrokerCheck CRD lists that he worked 23 years in the industry. There are nine customer disputes on his record, most of which were settled and two that remain pending. The investor lawsuits allege broker misconduct.

Why Are Many Alternative Investments Unsuitable For Retail Investors, Including Most Retirees?

• High-risk. A lot of private placements are issued by startups or unknown entities with limited track records.
• Illiquid. Lock up periods for these investments can last for years. Limited secondary markets for reselling.
• Lack of transparency. Unlike public offerings, private placements aren’t subject to the same disclosure requirements.

It is important that your financial advisor make sure that any investment recommendation they make is suitable for you given your age, risk tolerance level, financial goals, liquidity needs, and other key factors.

Why Hire the Shepherd Smith Edwards and Kantas Alternative Investment Law Firm To Represent You Against Your Broker-Dealer?

Pursuing any investment loss recovery claim against a financial advisor will likely prove challenging, which is why you need seasoned securities lawyers on your side.

• Shepherd Smith Edwards and Kantas has been fighting for investors against brokers and investment advisers for more than 35 years.
• When you retain us, you are hiring skilled broker fraud attorneys who used to be financial advisors.
• We left the brokerage industry because we didn’t like how investors were being treated.
• We use what we know as former industry insiders, as well as our many years of experience as broker fraud attorneys, to protect our clients’ legal rights while we fight for their financial recovery.

How To Work With Our Alternative Investment Law Firm

Step 1: Contact us today to schedule your free case consultation.

Step 2: Speak with one of our knowledgeable securities lawyers so that we can determine whether you have grounds for a claim against your broker-dealer.

Step 3: If we decide to work together, our entire law firm will coordinate with you to gather all key documents and communications while we conduct a thorough investigation into your losses. Shepherd Smith Edwards and Kantas will file your Statement of Claim in FINRA arbitration and represent you in all legal proceedings.

Call our Alternative Investment Law Firm at (800) 259-9010 or contact us online today.