Our Broker Fraud Lawyers May Be Able To Help
Shepherd Smith Edwards and Kantas Broker Fraud Lawyers (investorlawyers.com) are speaking to investors who suffered losses in Vintage Delaware Statutory Trusts (Vintage DST). This private placement Regulation D offering was sponsored by the now-defunct Crew Enterprises (f/k/a Versity Investments). It appears to have been unsuitably recommended to retail investors, retirees, and other unaccredited investors by financial advisors. Vintage DST is a risky, illiquid alternative investment. We are investigating the following brokerage firms or investment advisers that sold this private placement offering:
- Aurora Securities
- Cabin Securities
- Clark Wealth Strategies
- Capulent
- Emerson Equity
- Link ALTS Capital/American Alternative Capital
- Great Point Capital
- IBN Financial Services
- Safe Harbor Asset Management
- Stonecrest Capital Markets
- Westpark Capital
- Whitehall-Parker Securities
It has come to our attention that the brokerage firms that sold Versity DSTs were paid a multi-lawyer fee of up to 9.29%. Not only that, but the executives who ran Crew Enterprises/Versity Investments are now accused of having run an alleged $56M investment scam.
What Is Vintage DST and Why Was It Unsuitable for Many Investors?
Vintage DST is a real estate investment structured as a Delaware Statutory Trust. Regulatory filings indicate that in 2022, it was seeking to raise nearly $87.9M from investors for a multifamily development in Winter Haven, Florida. While the potential of monthly returns can make this type of commercial real estate attractive to investors, it should only have been marketed and sold to investors who could withstand not being able to access their money for long periods of time.
Like other Delaware Statutory Trusts, Vintage DST has limited liquidity with no public market. Performance relied on underlying real estate performance, which can be impacted by interest rates, the market, vacancies, and economic woes. Risk of loss of principal was always possible, as were potential tax consequences for investors. This included the loss of any 1031 exchange benefits if a DST does not meet requirements set by the Internal Revenue Service (IRS).
It doesn’t help that Reg D offerings are not subject to the same US Securities and Exchange Commission (SEC) disclosure obligation as public investment offerings.
Now, there are growing concerns that not only was Vintage DST unsuitably sold by brokerage firms to retail investors and conservative seniors, but also, misrepresentations and omissions may have been made, as well as, in some instances, overconcentration. Meanwhile, brokerage firms may have been paid more than $7.9M in commissions for selling Vintage DST to investors. If a financial advisor sold this risky private placement because of the fees they could earn rather than because it was a suitable recommendation, this could be a violation of these investors’ best interests.
Why Hire Shepherd Smith Edwards and Kantas Broker Fraud Lawyers To Recoup Your Vintage DST Losses?
Already, we have filed a number of investment loss recovery claims against Crew Enterprises/Versity on behalf of investors who have suffered Delaware Statutory Trust losses. As an investor who suffered losses, you may be able to go after the broker who unsuitably marketed and sold you Vintage DST or any other Versity DSTs.
Hiring experienced securities lawyers who already understand this Delaware Statutory Trust and why your broker should be held liable, can maximize your chances for a full financial recovery.
Call our Broker Fraud Lawyers at (800) 259-9010 or fill out this online form today to schedule your free case consultation.