Brokers Under Fire Over Allegedly Unsuitable Investment Recommendation of These Regulation D Offerings

Shepherd Smith Edwards and Kantas is investigating brokerage firms that unsuitably sold risky, illiquid Versity Investments Delaware Statutory Trusts (DSTs) to retail investors and retirees. The alternative asset firm faces allegations of a $56 million investment fraud, prompting the law firm to file FINRA arbitration claims to recover significant investor losses.

Shepherd Smith Edwards and Kantas FINRA Arbitration Attorneys (investorlawyers.com) are continuing to investigate the brokerage firms that sold Delaware Statutory Trusts (DSTs) from Versity Investments (NKA Crew Enterprises), including the following:

Emerson Equity is the managing brokerage firm for these DSTs. One of its brokers, Brian James Nelson, founded Versity.
Aurora Securities
Realta Equities
Capulent
Dempsey Lord Smith
Lion Street Financial
Westpark Capital
Purshe Kaplan Sterling Investments
IBN Financial
Cape Securities
Stonecrest Capital Markets
Many others.

What Is The Controversy Surrounding Versity DSTs, and How Is This Harming Investors?

The alternative asset firm, which oversees student housing near colleges and multifamily properties, is accused of running a $56M investment fraud.
Investors were expecting to earn income from rents through indirect ownership in a Versity DST.
There is growing concern that many of the properties in the Versity/Crew Enterprises portfolio are contending with foreclosures, defaults, and other woes.
These are Regulation D private placement offerings that should only have been sold to accredited investors who could understand and withstand the risks. Yet even they too may now be looking at significant losses in the wake of the fraud allegations.
There are retail investors who were unsuitably sold Versity Investments.
Versity DSTs were risky, illiquid investments from the start. They were also vulnerable to fluctuations in the real estate market, the economy, and even student enrollment.
Many of the investors we have spoken to said they had no idea of all of the risks involved because their financial advisor never fully informed them.

Versity DST Investments:

VERSITY EQUITYCO, LLC
VERSITY EQUITYCO II, LLC
HAYWORTH TANGLEWOOD DST
HAYWORTH TANGLEWOOD ST, LLC
VINTAGE DST
VINTAGE ST, LLC
THE WALK DST
THE WALK ST, LLC
ONE ON 4^TH DST
ONE ON 4^TH ST, LLC
4^th and J
345 Flats
NB Gathering DST
NB Mountain Valley DST
NB Loft Vue DST
Apex South
Buckingham
Greeley Flats
Astoria
Buckingham
Inspire on 22^nd
Campus Walk
Molly Barr
Grand Street

Representing Versity/Crew Enterprises Delaware Statutory Trust Investments Against Brokerage Firms

Shepherd Smith Edwards and Kantas FINRA Arbitration Attorneys have filed a number of investment loss recovery cases against the broker-dealers that unsuitably marketed and sold these Regulation D offerings to retail investors and retirees. We filed these claims in FINRA arbitration, with many of them making similar allegations, including:

Unsuitable investment recommendations
Misrepresentations and omissions of the risks
Overconcentration
Due diligence failures
Breach of fiduciary duty
Breach of contract
Negligence
Gross negligence
Failure to supervise
And more.

The brokerage firms and their registered representatives earned a multi-layer of fees, as well as commissions for promoting and selling Versity DSTs to customers.

Find Out Whether You Have a Versity DST Case Against Your Brokerage-Dealer

Versity/Crew Enterprise investors may be looking at serious losses. Call our FINRA Arbitration Attorneys at (800) 259-9010 or contact us online.