Broker Gabriel Menjin Is A Respondent In Six-Figure Investment Loss Recovery Claim

Law law firm Shepherd Smith Edwards and Kantas has filed a FINRA lawsuit against Great Point Capital and financial advisor Gabriel Menjin on behalf of an Oregon client seeking up to $500,000 in losses from Nelson Brothers Delaware Statutory Trusts (DSTs). The suit alleges that the firm unsuitably recommended these high-risk, illiquid private placements—which earned the broker-dealer over 10% in commissions—to the client’s elderly parents without properly disclosing risks, fee structures, or ongoing product defaults.

Shepherd Smith Edwards and Kantas FINRA Attorneys (investorlawyers.com) is representing an Oregon Claimant who suffered losses in a Nelson Brothers Delaware Statutory Trusts (DSTs) against Great Point Capital and its financial advisor Gabriel Menjin. In her FINRA lawsuit, our Client is suing for up to $500,000 plus interest and costs.

The Claimant is acting on behalf of her elderly mother who, along with her father, began working with Great Point Capital when they were in their eighties. They were unfamiliar with Delaware Statutory Trusts, which are particularly bad for retirees. DSTs are illiquid, Regulation D private placements. They are high-risk, cannot be resold, and speculative.

Nevertheless, their Great Point Capital financial advisor went on to unsuitably recommend DSTs sponsored by Nelson Brothers. The broker-dealer and its registered representative earned at least 10% or more in commissions or fees from the sale of these Reg D offerings.

In her Delaware Statutory Trust recovery case, our Client is also alleging overconcentration, misrepresentations and omissions, breach of contract, breach of fiduciary duty, and more.

What Are Problems Plaguing Nelson Brothers DSTs and Impacting Investors?

In 2018, Patrick and Brian Nelson split their original company and its portfolio of Delaware Statutory Trusts into two companies: Nelson Partners Student Housing and NB Private Capital, which was renamed Versity Investments and then Crew Enterprises. Recent problems include:

• A number of these Delaware Statutory Trusts (DSTs) stopped paying monthly distributions.
• Property closures and loan defaults impacting certain Nelson Brothers DSTs haven’t helped either.
• Mismanagement allegations related to the purported concealment of fee structures, improperly reported syndication proceeds, and the failure to properly disclose high-risk conditions.
• Both Nelson brothers have faced fraud allegations, including a purported $56M investment fraud naming Brian Nelson, Crew Enterprises, and other executives.

Why Are Investors Suing Brokerage Firms for Selling Nelson Brothers Delaware Statutory Trusts?

• There are growing concerns that a number of brokers prioritized the money they could make from these private placement offerings even when they were unsuitable investments for customers.
• A lot of Nelson Brothers DST investors that our securities fraud law firm have spoken with claim they were never fully apprised of the risks or the multi-layer of fees they would have to pay.
• Financial advisors that sold Nelson Brothers DST have come under scrutiny over whether they conducted the necessary due diligence, which should have raised questions about whether it was a good idea to recommend these Delaware Statutory Trusts to customers.
• Regulation D investments should only ever be sold to accredited investors, yet many retail investors and retirees have suffered Nelson Brother DST losses.

Why Hire Shepherd Smith Edwards and Kantas To Represent Your Nelson Brothers Investor Lawsuit?

Our Delaware Statutory Trust loss attorneys are representing Nelson Brothers DST investors. We are a seasoned securities law firm that has years of experience recouping losses caused by broker misconduct or negligence.

Our skilled FINRA attorneys know how to maximize an investor’s chances for financial recovery in the FINRA arbitration forum.

Talk To Us About Your Nelson Brothers DST Losses Today

When you work with Shepherd Smith Edwards and Kantas FINRA Attorneys, know that you will receive quality securities representation and personalized attention. Call (800) 259-9010 or contact us online to schedule your free case assessment.