RK Trailside Verdae DST Investor Lawsuit Investigation
Did your financial advisor recommend investing in RK Trailside Verdae DST? The White Law Group is investigating whether brokerage firms may have unsuitably recommended this Delaware Statutory Trust (DST) to retail investors seeking 1031 exchange options. Although DSTs are often marketed for tax deferral and “hands-off” income, they can be complex, illiquid, and inappropriate for many investors.
About the Offering (per SEC filings)
According to a Form D filed with the Securities and Exchange Commission, RK Trailside Verdae DST is a Delaware Business Trust formed in 2021. Reported details include:
- Total Offering Amount: $44,658,000
- Minimum Investment: $25,000
- Security Type: Equity; Delaware Statutory Trust Beneficial Interests
- Industry: Real Estate – Commercial
- Exemption Claimed: Rule 506(b) of Regulation D
- Estimated Sales Commissions: $2,679,480
- Estimated Payments to Related Persons (Use of Proceeds): $2,415,000
- Promoters/Related Persons listed: Rance King Properties, Inc.
Placement/Compensation recipients listed include (among others): Aurora Securities (CRD 46147); Nationwide Planning Associates (CRD 31029); Provident Wealth Advisors (CRD 157392); Metropolitan Capital Investment Banc (CRD 148820); RCX Capital Group (CRD 114290); Great Point Capital (CRD 114203); DAI Securities (CRD 36673); DFPG Investments (CRD 155576); Willow Cove Investment Group (CRD 107824); Arkadios Capital (CRD 282710); Growth Capital Services (CRD 124658); Thornhill Securities (CRD 22333); JRL Capital (CRD 10225); Pinnacle Capital Securities (CRD 106213); Select Capital Corporation (CRD 145997); The Strategic Financial Alliance (CRD 126514); Courtlandt Securities (CRD 137356); Concorde Investment Services (CRD 151604); Crown Capital Securities (CRD 6312); Independent Financial Group (CRD 7717); Oak Tree Securities (CRD 18126); Whitehall-Parker Securities (CRD 10608); McDermott Investment Services (CRD 154926); Lightpath Capital (CRD 34617); Emerson Equity LLC (CRD 130032); Cabot Lodge Securities (CRD 159712); WealthForge Securities (CRD 152550); Patrick Capital Markets (CRD 16518); Capulent LLC (CRD 155155); Center Street Securities (CRD 26898); Colorado Financial Service Corporation (CRD 104343); and Rance King Securities Corporation (CRD 15737).
Why DST Investments Can Be Risky
- Illiquidity: No public market; selling prior to disposition can be difficult or impossible.
- High Up-Front Costs: Commissions and offering expenses can meaningfully reduce returns.
- No Investor Control: Investors typically cannot influence management or key financial decisions.
- Capital Constraints: DSTs generally cannot raise new capital for unexpected repairs or cash needs.
- Property/Market Risk: Occupancy, rent levels, interest rates, and local market conditions can reduce distributions and value.
Broker Duties and Suitability
Broker-dealers must comply with FINRA rules and Regulation Best Interest by conducting product due diligence and ensuring recommendations are suitable given each client’s objectives, risk tolerance, liquidity needs, and time horizon. Selling complex, illiquid private placements to investors who require liquidity or income stability may be unsuitable. Firms that fail to supervise sales practices or adequately disclose risks may be liable for losses.
Can Investors Recover Losses?
If you suffered losses in RK Trailside Verdae DST—or another DST—you may be able to pursue claims against the selling brokerage firm through FINRA arbitration. Arbitration can allow investors to seek damages for unsuitable recommendations, misrepresentations/omissions, or failure to supervise.
National Securities Law Firm – Free Consultation
If you are concerned about your investment in RK Trailside Verdae DST, call The White Law Group at (888) 637-5510 for a free consultation. We represent investors nationwide in FINRA arbitration involving alternative investments, private placements, and DSTs. With offices in Chicago, Illinois and Seattle, Washington, our firm focuses on helping investors recover losses from negligent brokerage firms.
Learn more at www.whitesecuritieslaw.com.
FAQs
What is RK Trailside Verdae DST?
A Delaware Business Trust (formed 2021) offering beneficial interests in a commercial real estate DST via a Reg D Rule 506(b) private placement with a stated maximum of $44.658 million.
How much are the fees?
The filing discloses estimated sales commissions of approximately $2.68 million on the full raise, in addition to other offering costs that may reduce investor returns.
How can I seek recovery if I have losses in a DST?
You may be able to file a FINRA arbitration claim against the brokerage firm that recommended the DST, seeking damages for unsuitable advice, omissions, or failure to supervise.
