High-Yield, Secured Medium-term Debt Instruments May Have Been Unsuitably Recommended to Customers, Including Non-US Citizens

Brokerage firms are under scrutiny for potentially unsuitably recommending risky DCM US Multi-Family Homes Notes to retail investors and non-US citizens, leading to significant losses after the issuer failed to make interest payments on over $400 million in debt. In response, the law firm Shepherd Smith Edwards and Kantas is offering free case assessments to help affected investors investigate potential claims of misrepresentation and unsuitability to recover their investment principal.

If you are an investor who suffered losses in one the DCM US Multi-Family Homes PLC Series 2020, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. These high-yield secured medium-term debt instruments were promoted as a chance to invest in the US multifamily real estate market. They were sold by the following brokerage firms:

• Andbanc Brokerage
• BCI Securities, Inc.
• Boreal Capital Securities, LLC, (AKA) Mora Capital Securities
• Mora WM Securities

While non-US citizens were the main investor group targeted, private wealth and retail customers who are American citizens were also sold this risky alternative investment.

Now, there are DCM US Multi-Family Homes PLC Series 2020 investors who are reporting significant losses, including a total loss of their principal.

What Happened To The DCM US Multi-Family Homes PLC Series 2020 Notes?

In 2024, issuer DCM US Multi-Family Homes PLC did not make the interest payments that were due on its Notes, including those from:

• Series 2020-DCM1: a $100M offering of 9.25% secured medium-term notes due in 2025
• Series 2022-DCM3: 8.75% secured medium-term notes due in 2026
• Series 2022-DCM4: floating-rate secured medium-term notes due in 2025

Delistings followed that were purportedly tied to high interest rates, real estate market pressures, depreciating assets, and failed property acquisitions. This affected $418M in principal.

What Were Some Of the Other Risks Involving DCM US Multi-Family Homes Notes?

This investment was unsuitable for retail investors in light of the many risks involved, such as:

• A Special Purpose Vehicle Structure was used. This led to investors absorbing default or credit exposure when cash flows or financing did not succeed.
• The issuer appears to be insolvent.
• These notes held secondary or subordinate interest positions in underlying real estate. This means senior debt holders must be paid back first before DCM US Multi-Family Homes noteholders can make their claim on whatever is left.
• The requirement of a high investment minimum may have led to excessive exposure and overconcentration for retail customers.

Offering Free Case Assessments to DCM US Multi-Family Homes Notes Investors

Shepherd Smith Edwards and Kantas is looking into claims not just into unsuitable investment recommendation by financial advisors, but also allegations of misrepresentations and omissions about the assets that were supposed to be securing the DCM notes, the issuer’s financial state, the illiquidity of this investment, the risks involved, and more.

We are seasoned securities attorneys that represent US citizens and non-US citizens. Allow us to help you explore your legal options.

Talk To Us About Your DCM US Multi-Family Homes Series 2020 Losses Today

Call (800) 259-9010 or contact us online.