Investor Alert: Southern Star The Colony, LP
The White Law Group is investigating potential FINRA arbitration claims involving broker-dealers who may have improperly recommended investments in Southern Star The Colony, LP, a Regulation D private placement.
About the Offering – Southern Star The Colony, LP
According to a Form D filing with the Securities and Exchange Commission (SEC), Southern Star The Colony, LP is a limited partnership formed in 2020 in Texas. The company’s principal place of business is located in Houston, Texas.
The filing, dated June 15, 2022, indicates that the issuer sought to raise up to $11,285,325 in equity through an exempt offering under Rule 506(b) of Regulation D. At the time of the filing, the company reported raising $2.6 million from 11 investors, with a minimum investment of $50,000 per investor.
The offering listed Skystone Securities, LLC (CRD#: 131953), a registered broker-dealer based in Dallas, Texas, as the recipient of an estimated $150,000 in sales commissions.
Risks of Regulation D Offerings
Private placement offerings such as Southern Star The Colony, LP are generally speculative and illiquid investments. These offerings may present heightened risks, particularly to investors who are not fully informed of the nature and volatility of such securities. Common risks include:
- Lack of Liquidity – Reg D investments are not publicly traded and may be difficult to exit.
- High Commissions – Broker compensation may create conflicts of interest.
- Lack of Transparency – Issuers are not subject to the same reporting standards as public companies.
- Potential for Loss – Many Reg D projects are real estate developments or startups that may fail to meet projections.
Broker Due Diligence Requirements
Brokerage firms have a legal duty to conduct due diligence on investments they recommend and to ensure recommendations are suitable based on an investor’s objectives, risk tolerance, and financial circumstances.
Failure to uphold these responsibilities — such as by failing to investigate the issuer’s financials, management team, or business plan — may lead to liability in the event of investor losses.
FINRA Arbitration vs. Class Action
If you invested in Southern Star The Colony, LP based on a recommendation from a financial advisor and have concerns about how the investment was presented, you may be eligible to file a claim through FINRA arbitration. FINRA arbitration is a streamlined alternative to class actions, offering private hearings, faster resolutions, and binding decisions.
The White Law Group has represented hundreds of investors nationwide in FINRA arbitration proceedings, including cases involving high-risk Reg D offerings.
Free Consultation
If you suffered losses in Southern Star The Colony, LP and believe your broker failed to conduct adequate due diligence or misrepresented the investment, call The White Law Group at (888) 637-5510 for a free case evaluation.
For more information, visit www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) : Southern Star The Colony
What is Southern Star The Colony, LP?
It is a Texas-based limited partnership that filed a Regulation D equity offering in 2022 to raise funds for commercial real estate development.
How much was raised and who was involved?
As of the filing, the issuer had raised $2.6 million from 11 investors, with Skystone Securities, LLC listed as the selling broker-dealer.
Can I recover my investment losses?
Possibly. If your broker failed to disclose the risks or perform adequate due diligence, you may be eligible to recover losses through FINRA arbitration.
Last modified: August 6, 2025
