HZ Echelon DST: Investor Lawsuit

Investment Concerns: HZ Echelon DST

Have you suffered losses investing in HZ Echelon DST? You may be entitled to pursue a FINRA arbitration claim to recover damages. The White Law Group is reviewing potential claims against brokerage firms that may have improperly recommended this risky DST offering.

Overview of HZ Echelon DST

HZ Echelon DST is a Delaware Statutory Trust created by Hamilton Zanze. It was offered as a real estate investment opportunity for individuals completing 1031 tax-deferred exchanges. According to filings with the SEC, the company aimed to raise over $63 million from investors.

Risks Linked to 1031 DST Investments

While 1031 DSTs may offer tax benefits and passive income, they carry significant risks:

· No ability to raise additional capital after the offering closes—potentially leaving investors exposed to financial shortfalls if the property requires costly repairs.

· Little or no investor control—management decisions are handled solely by the sponsor.

· Illiquidity—DST interests are not publicly traded, and exiting the investment before a property sale is often difficult or impossible.

These features can make DSTs a poor fit for investors seeking flexibility or capital preservation.

Did Your Broker Properly Evaluate This Investment?

Financial advisors and broker-dealers are required by FINRA rules to only recommend investments that align with your financial goals, risk tolerance, and investment experience. They are also expected to conduct thorough due diligence on investment offerings before presenting them to clients.

If your advisor misrepresented the risks of HZ Echelon DST, or failed to evaluate whether it was appropriate for your personal situation, they could be liable for any resulting losses.

How FINRA Arbitration May Help Recover Your Losses

Investors who believe they were misled or improperly advised may be able to pursue recovery through FINRA arbitration. This forum offers a streamlined, less costly alternative to traditional litigation.

The White Law Group has handled hundreds of FINRA arbitration claims nationwide, helping clients recover losses stemming from unsuitable investment recommendations and broker misconduct.

Speak with a Securities Attorney Today

If you’re worried about your investment in HZ Echelon DST, contact The White Law Group at 888-637-5510 for a free case evaluation. Our firm focuses exclusively on representing investors in claims against broker-dealers across the United States.

We have offices in Chicago, IL and Seattle, WA, and represent clients nationwide. To learn more about our firm and your legal options, visit whitesecuritieslaw.com.

FAQs about HZ Echelon DST and 1031 Investments

1. What makes 1031 DSTs like HZ Echelon so risky?

While marketed as passive real estate investments, DSTs are highly illiquid, offer no control, and cannot raise additional capital—making them risky if property issues or market shifts occur.

2. Can I exit my DST investment early?

Generally, no. DSTs are designed to be held until the underlying property is sold. Secondary markets for these interests are limited, and early exit options are typically unavailable.

3. What should I do if I believe my broker misled me?

You should speak with a securities attorney experienced in FINRA arbitration. You may be able to pursue a claim against the broker-dealer to recover your investment losses