The White Law Group Files FINRA Arbitration Claim Against Great Point Capital for Allegations of Unsuitable Investments
August 18th, 2025 – The White Law Group has filed a FINRA arbitration claim against Great Point Capital, LLC (CRD # 114203) on behalf of a South Carolina couple who allege they were improperly invested in a series of risky and illiquid alternative investments, including multiple Delaware Statutory Trusts (DSTs) and private placements.
According to the claim, the investors were sold more than $826,000 worth of speculative alternative investments that were allegedly unsuitable given their financial situation and investment objectives.
Alternative Investments at Issue
The lawsuit filed against Great Point Capital involves the following investments:
- Inspired Senior Living of Delray Beach DST
- CS 1031 Zero Coupon LV Training Facility, DST
- CS 1031 MOB TX VI, DST
- Southern Star Self Storage DST
- Government Leased Holdings, LLC
- CS 1031 Zero Coupon Fulfillment Center, DST
- InCommercial Net Lease DST 6
- Three National Logistics Properties Investors DST
The couple is seeking between $500,000 and $1,000,000 in damages through the FINRA arbitration process.
The Risks of DST Investments and Private Placements
Delaware Statutory Trusts (DSTs) and other private placement investments are often marketed as passive, income-producing real estate opportunities. However, these investments are typically high-risk, illiquid, and complex.
DSTs are generally only suitable for wealthy, sophisticated investors who can afford to tie up their money for years with limited liquidity options. Additionally, these products often pay hefty commissions to the brokers and firms that sell them — sometimes as high as 7–10% — creating potential conflicts of interest.
Broker-dealers like Great Point Capital are required by FINRA rules to:
- Conduct thorough due diligence on each offering before recommending it.
- Ensure that investments are suitable for the customer based on their age, risk tolerance, net worth, and investment experience.
- Properly supervise brokers who recommend high-risk investments.
The claim alleges that Great Point Capital failed in these responsibilities, leading to significant financial losses for the investors.
Inspired Healthcare Capital – Distribution Suspensions
One of the investments at issue in this claim is the Inspired Senior Living of Delray Beach DST, sponsored by Inspired Healthcare Capital (IHC). In July 2025, IHC announced it was suspending distributions across several of its investment programs, citing liquidity issues and market conditions. For investors, this means not only a lack of income, but also uncertainty about whether they will ever recover their principal. This development underscores the risks of DST and private placement investments, particularly when distributions are one of the primary reasons investors are persuaded to purchase them.
Statement from The White Law Group
“Unfortunately, we continue to see cases where investors are concentrated in unsuitable alternative investments like DSTs and other private placements,” said Dax White, managing partner of The White Law Group. “We believe there may be many more investors who suffered losses as a result of these types of recommendations, and we encourage anyone who purchased similar investments to review their accounts carefully.”
Great Point Capital Lawsuits – What Investors Should Know
This is not the first time investors have filed claims involving Great Point Capital and other brokerage firms that sell risky alternative products. Firms have an obligation to put their clients’ interests ahead of their own financial incentives.
If your financial advisor recommended DSTs, private placements, or non-traded REITs that resulted in losses, you may be able to pursue recovery through FINRA arbitration, a private dispute resolution forum for claims against brokerage firms.
Free Consultation with a Securities Attorney
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We have successfully represented thousands of investors in FINRA claims against brokerage firms like Great Point Capital for unsuitable investment recommendations.
If you invested in DSTs, private placements, or other high-risk alternative investments with Great Point Capital and suffered losses, please contact The White Law Group at (888) 637-5510 for a free consultation.
You can also visit our website at www.whitesecuritieslaw.com to learn more about Great Point Capital lawsuits, FINRA claims, and investor recovery options.
Frequently Asked Questions – Great Point Capital
- Can I sue Great Point Capital for investment losses?
If you suffered losses due to unsuitable recommendations or lack of broker due diligence, you may be able to file a claim against Great Point Capital. Most cases are pursued through FINRA arbitration, the forum that resolves disputes between investors and brokerage firms. - What are the risks of DST investments?
Delaware Statutory Trusts (DSTs) are generally illiquid, high-risk investments that can tie up investor money for years. They are sensitive to market and interest rate fluctuations, rely heavily on sponsor performance, and often pay brokers high commissions — which can create conflicts of interest. - Why are private placements and non-traded REITs considered risky?
Private placements and non-traded REITs lack transparency, have limited secondary markets, and carry high fees. These products may be suitable for some wealthy, experienced investors, but they are often unsuitable for retirees or conservative investors seeking income and stability. - What is a FINRA arbitration claim?
FINRA arbitration is a legal process where investors can pursue compensation from brokerage firms and financial advisors for misconduct such as unsuitable recommendations, misrepresentation, or failure to supervise. It is typically faster and less expensive than a traditional lawsuit. - How much does it cost to hire The White Law Group?
The White Law Group typically represents investors on a contingency fee basis, meaning there are no legal fees unless the firm recovers money on your behalf. - How do I know if I have a claim against Great Point Capital?
If you invested in DSTs, private placements, or other alternative investments recommended by Great Point Capital and experienced significant losses, you may have a claim. Speaking with a securities attorney can help you determine your recovery options.
