Shepherd Smith Edwards and Kantas Is Representing These Investors in Their Six-Figure FINRA Lawsuit

Two Georgia retirees are seeking up to $500,000 in FINRA arbitration after facing a near-total loss of their principal in The Nine at Memphis Delaware Statutory Trust (DST), a complex private placement issued by Versity Investments. Represented by law firm Shepherd Smith Edwards and Kantas, the couple alleges that brokerage firm Capulent and its financial advisors unsuitably recommended the illiquid, high-risk real estate trust and overconcentrated their account.

Two Georgia retirees are seeking up to $500,000 over losses they sustained in The Nine at Memphis Delaware Statutory Trust (The Nine DST) from Versity Investments (now known as Crew Enterprises). The Respondents in their FINRA arbitration claim are Capulent and its brokers Edwards Eric Fernandez and Justin Matthew Bachman.

The Claimants contend that the Respondents unsuitably recommended this Regulation D offering, overconcentrating their account in The Nine DST. They are looking at a near total loss of their principal.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this couple against Capulent and its financial advisors in FINRA arbitration.

Capulent broker Eric Fernandez’s BrokerCheck CRD lists 18 pending customer disputes involving Versity DSTs.  The claimants are collectively pursuing more than $4M in financial recovery.

Why Are The Nine @ Memphis DST Investors Claiming Losses?

• This 385-bed student housing property near the University of Memphis was sold to investors as a Delaware Statutory Trust.  This allowed them to obtain undivided beneficial interest in the trust that has the title to the commercial real estate property.
• This year, investor payouts were suspended.
• DST issuer Versity is accused of running a $56M investor scam.
• Investors were charged a multilayer of fees and commission for The Nine DST.

Delaware Statutory Trusts are illiquid investments in which investors usually have zero control. There is also the risk that an investor could lose their entire principal if the investment fails. Real estate and market vulnerabilities,  including market downturns, tenant vacancies and delinquencies, and fluctuating interest rates don’t help. The multilayer of fees typically charged to investors eat up a significant chunk of their principal.

Why Are The Nine at Memphis Investors Suing Their Brokers Over Their Delaware Statutory Trust Losses?

Shepherd Smith Edwards and Kantas is representing Claimants who suffered losses in a Versity/Crew Enterprises DST. The allegations of broker misconduct involving the sale and marketing of these Regulation D private placement include the following:

• Unsuitable investment recommendations, including to retail customers and retirees. Reg D offering should only be sold to accredited investors.
• Misrepresentations and omissions of the risks and various fees that DST investors have to pay.
• Excessive concentration in some customers’ accounts.
• Breach of fiduciary duty.
• Breach of contract.
• Supervisory failures.
• Regulation BI violations.
• And more.

With the fraud allegations currently plaguing Versity, it is highly unlikely that an investor will recover much or anything at all from this issuer. Pursuing damages from your broker could be your best chance at financial recovery.

 

Why You Need To Hire Skilled Delaware Statutory Trust Loss Lawyers If You Are Going To Sue Your Broker

DSTs are complex Regulation D investments. You want the securities law firm you retain to have considerable experience in successfully representing investors who have suffered losses in these risky private placements.

As an investor with a dispute against your broker-dealer, you will be making your claim in FINRA arbitration. The ruling issued by the arbitration panel will likely be final, so hiring skilled DST recovery attorneys with solid experience in this legal forum is essential.

 

Talk To Us About Your The Nine At Memphis/Versity Investments DST Losses Today

Shepherd Smith Edwards and Kantas is representing many Delaware Statutory Trust investors against their brokers in FINRA arbitration. Call (800) 259-9010 or contact us here today to schedule your free case assessment.