Our Delaware Statutory Trust Recovery Attorneys Are Investigating Investor Losses

Zero-coupon Delaware Statutory Trusts (DSTs) are highly leveraged, complex 1031 exchange investments that offer no cash distributions, expose investors to “phantom income” tax liabilities, and carry significant illiquidity risks. The law firm Shepherd Smith Edwards and Kantas is investigating claims against brokers who unsuitably recommended these risky Reg D offerings to retail customers and conservative retirees without properly disclosing the associated risks and high fees.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing investors who suffered losses in zero-coupon Delaware Statutory Trusts (DSTs), which are also referred to as zero-cash-flow DSTs or zero DSTs.  Structured as a Regulation D offering meant for investors looking to solve tax and structural issues with a1031 Exchange, this is a risky unsuitable investment for retail customers and conservative seniors.