Claimant Suffered Losses in Inland Zero-Coupon OH Fulfilment DST and Internacional Gatsby DST

National securities law firm Shepherd Smith Edwards and Kantas is representing an inexperienced California investor in a FINRA arbitration claim seeking up to $1 million against McDermott Investment Services. The claim alleges the firm unsuitably recommended risky Delaware Statutory Trusts (DSTs) that led to near-total principal losses despite the client’s request for safe, income-generating investments.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing a California investor in her FINRA arbitration claim against McDermott Investment Services, its control person Dean Patrick McDermott, and broker Troy Thomas. Our Client contends that she was unsuitably recommended two Delaware Statutory Trusts (DSTs):  Inland Zero-Coupon OH Fulfilment DST and Internacional Gatsby DST. She went on to sustain significant losses and is now seeking up to $1,000,000 in financial recovery.

This is someone who entrusted a good portion of her savings and retirement funds to the Respondents. She made it clear her priorities were safety and income. She was an inexperienced investor with very little understanding of securities and no prior experience in DST investments.

Why This DST Investor Is Suing Is Suing McDermott Investment Services

• This investor made it clear she was not interested in taking on undue risk. Instead, the broker-dealer and its financial advisor recommended these DSTs. Our Client alleges that her broker made it seem that she could lose out on Internacional Gatsby DST if she didn’t invest right away. She is accusing the Respondents of overconcentrating her account with Inland Zero-Coupon OH Fulfilment DST.
• In her Delaware Statutory Trust loss claim, this investor is alleging excessive concentration, unsuitability, misrepresentation, negligent misrepresentation, Regulation Best Interest violation, due diligence failures, breach of contract, breach of fiduciary duty, control person liability, unjust enrichment, and more.
• This Claimant is looking at a near total loss of her principal. Meanwhile, the DSTs paid the financial advisors and McDermott Investment Services 5-6% in commissions and 8.5% to 9.5% in other fees.

McDermott Investment Services broker Troy Thomas has been a registered representative in California for 23 years. His BrokerCheck CRD notes at least one other DST loss claim in which the customer is suing for $400,000.

Why Are So Many Delaware Statutory Trust Investors Suing Their Brokers?

• DSTs are Regulation D offerings that should only be sold to accredited investors. Yet our knowledgeable Delaware Statutory Trust investor lawyersare representing retail investors and retirees who were unsuitably marketed and sold these private placements.
• The Delaware Statutory Trust loss claims we are filing involve allegations of broker misconduct or negligence.
• Investors are telling us they had no idea they would be charged a multilayer of fees.
• Some issuers of DSTs are in financial trouble or accused of fraud. Recovering damages from them may prove impossible, but that doesn’t mean you can’t hold your financial advisor liable for exposing you to these illiquid, risky, Reg D offerings.

Representing Delaware Statutory Trust Claimants in FINRA Arbitration

Shepherd Smith Edwards and Kantas is representing dozens of DST investors in FINRA arbitration against their brokers. We are a seasoned securities law firm with a depth of experience handling complex investment loss recovery claims.  Most of our clients have secured financial recovery through our skilled efforts.

Talk To Us About Your Delaware Statutory Trust Losses

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