Astoria DST: Investor Lawsuits, featured by top securities fraud attorneys, The White Law Group
The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Astoria DST to investors. If you suffered losses or were overconcentrated in illiquid alternatives, you may be able to pursue recovery through FINRA arbitration.
What is Astoria DST?
Astoria DST, a private placement Delaware Statutory Trust (DST) investment, is reportedly sponsored by Crew Enterprises (formerly Versity Investments, LLC, and previously Nelson Brothers). Crew is a real estate company that has specialized in student housing and multifamily property investments.
The company reportedly filed a Form D in 2021 to raise approximately $45 million for a multifamily property located in Celebration, Florida. Emerson Equity, Cabin Securities, and Great Point Capital were listed as sales compensation recipients, among others.
Problems with Nelson Brothers / Versity / Crew Offerings
Investments sponsored by Nelson Brothers, later rebranded as Versity and now Crew Enterprises, have faced scrutiny due to concerns about performance, liquidity, and allegedly unsuitable recommendations by some brokerage firms. Many of these offerings have reportedly paused distributions and some have also reportedly filed for bankruptcy. Investors in these offerings, including various 1031 DST programs, have often reported significant difficulties redeeming their investments or selling on the secondary market.
The White Law Group has represented numerous investors in claims against brokerage firms involving 1031 DST investments. Many of these claims allege that financial advisors failed to adequately disclose the risks and limited liquidity of these high-commission products, leading to substantial investment losses for retail investors.
DSTs: Risks and Limited Liquidity
- Illiquidity: DSTs are long-term investments with virtually no secondary market.
- Loss of Principal: Returns depend on the performance of the underlying real estate asset.
- Lack of Control: Investors typically cannot influence management, financing, or sale decisions.
- Tax Consequences: Failure to meet IRS requirements may jeopardize intended 1031 tax benefits.
- Fee Drag: Upfront commissions and sponsor/placement fees can materially reduce investor returns.
Broker Due Diligence
Broker-dealers have a duty under Regulation Best Interest (Reg BI) to conduct due diligence before recommending investments. When advisors fail to properly evaluate DSTs or recommend them to investors for whom they are unsuitable, the brokerage firm may be held liable for resulting losses.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
While some investors consider joining a class action lawsuit, for larger claims (typically over $100,000), an individual arbitration claim is often the stronger option. Class actions are generally more useful for groups of investors with smaller claims that are not economically feasible to pursue individually.
Recovery for Investors
If you are concerned about your investment in Astoria DST or other Crew/Versity/Nelson Brothers offerings, please call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors nationwide in claims against brokerage firms through FINRA arbitration.
Frequently Asked Questions about Astoria DST
1. What is the problem with Astoria DST and other Crew/Versity/Nelson Brothers investments?
Many investors have reported losses due to limited liquidity, high fees, and poor performance of the underlying properties. These risks were often not fully explained to retail investors, leading to claims that brokerage firms may have made unsuitable recommendations.
2. Can I sue my broker for losses in Astoria DST?
Yes. If your broker or financial advisor unsuitably recommended Astoria DST or failed to disclose the risks, you may be able to recover your losses through a FINRA arbitration claim against the brokerage firm that sold the investment.
3. Is there a class action lawsuit against Astoria DST?
At this time, recovery for Astoria DST investors is generally pursued through individual FINRA arbitration claims rather than a class action lawsuit. Class actions are usually more effective for investors with smaller claims, while arbitration is often better for those who invested larger amounts.
4. How can The White Law Group help investors in Astoria DST?
The White Law Group has represented many investors in claims involving Crew, Versity, and Nelson Brothers offerings, including 1031 DST investments. Our attorneys may be able to help you recover your losses by filing a FINRA arbitration claim against the broker-dealer that recommended the investment.
