Claimant Is Accusing Brokerage Firm of Unsuitability, Overconcentration, Supervisory Failures

Shepherd Smith Edwards and Kantas are representing an elderly investor in a multi-million-dollar lawsuit against WestPark Capital following severe financial losses in Versity Delaware Statutory Trusts (DSTs). The claimant alleges that the brokerage firm engaged in unsuitability, overconcentration, and supervisory failures while earning high commissions, especially as Versity faces broader allegations of a $56 million investment fraud.

Shepherd Smith Edwards and Kantas (investorlawyers.com) represents an older investor who is suing WestPark Capital for up to $5,000,000 after sustaining losses in three Versity Delaware Statutory Trusts (DSTs). This is a Claimant who entrusted a good portion of his savings to this broker-dealer and one of their financial advisors.

Even as our client is looking at serious losses, WestPark Capital made money. The broker-dealer and its financial advisor earned a 6% commission, while this investor was asked to pay other fees as well.

In his Versity DST investment loss recovery claim, the claimant is alleging unsuitability, overconcentration, Regulation Best interest violations, misrepresentations and omissions, supervisory failures, breach of contract, breach of fiduciary duty, vicarious liability, and more.

Why Are Versity DSTs Causing Investors Serious Losses?

• Versity Investments, which is now Crew Enterprises, is accused of a $56M investment fraud.
• This real estate firm, which focuses on student housing and multi-family homes close to college campuses, stopped monthly investors distributions in 2024.
• It faces allegations of serious mismanagement, which is believed to have led to financial ruin for a number of its properties.
• High vacancies and unpaid vendor bills also reportedly proved problematic.
• Last year, Crew Enterprises was ordered to pay $47M to a lender, raising foreclosure worries and the loss of investor equity.
• There are growing concerns that broker-dealers made unsuitable investment recommendations, engaged in excessive concentration in customers’ accounts, committed due diligence failures, ignored investors’ best interests, and committed broker misconduct or negligence when marketing and selling Versity DSTs to investors.

I’m A Versity DST Investor. How Can I Get My Money Back?

• You may be entitled to damages from your financial advisor over the losses you sustained in a Versity DST.
• The first step is to speak with one of our seasoned Delaware Statutory Trust lawyers. We can assess whether you have grounds for an investment loss recovery claim as we explore your legal options.
• If you are thinking of suing Versity/Crew Enterprises directly, know that the chance of securing full recovery is unlikely seeing as there are allegations of fraud and financial woes involved.
• If you decide to sue your broker over your Versity DST losses, you will have to do this in FINRA arbitration. This is why it is important that you hire knowledgeable FINRA attorneys that know how to win in this legal forum.
• You want to work with a securities law firm that has experience in pursuing damages involving Delaware Statutory Trust losses and is not afraid to go up against your broker-dealer and their legal team.

Skilled Delaware Statutory Trust Attorneys

Shepherd Smith Edwards and Kantas representing investors who have suffered losses in Versity/Crew Enterprise DSTs and other Delaware Statutory Trusts. All too often, we have seen financial advisors choose the fees and commission they can earn from selling these illiquid products over making sure that this is a solid and safe investment choice for a client.

Talk To Us About Your Versity DST Losses

To schedule your free case consultation, call (800) 259-9010 or contact us online today.