Shopoff DHS Industrial Development Fund Investor Lawsuit Investigation
Shopoff DHS Industrial Development Fund, LLC is a $30 million private placement purportedly related to a planned 1 million-square-foot warehouse project in Desert Hot Springs, California. Shopoff expected to start construction in 2024. As of May 2026, it said it was still reportedly working to secure construction financing.
The White Law Group is investigating complaints involving Shopoff DHS Industrial Development Fund and the brokerage firms that sold it. Investors weighing a Shopoff DHS Industrial Development Fund lawsuit may be able to recover losses through FINRA arbitration.
What Is Shopoff DHS Industrial Development Fund, LLC?
Shopoff DHS Industrial Development Fund is a Delaware company formed in 2024 and based in Irvine, California. The filing reports no revenues. According to its website, Shopoff’s Desert Hot Springs industrial project now called Tradeway Logistics. Shopoff says it bought the 55-acre site in June 2024 for $39.5 million. The project page lists its status as pre-development.
Shopoff DHS Industrial Development Fund Offering Terms
- Offering size: $30,000,000
- Type of security: Equity
- Exemption claimed: Rule 506(b) of Regulation D
- Minimum investment: $50,000
- Estimated sales commissions: $2,400,000, or 8% of the offering
- Planned duration: Less than one year
Brokerage Firms Listed on the Form D
The Form D lists 13 broker-dealers that could receive sales commissions on this offering:
- Shopoff Securities, Inc.
- Alexander Capital, L.P.
- Third Seven Capital, LLC
- Moloney Securities Co., Inc.
- Arkadios Capital, LLC
- Cabot Lodge Securities, LLC
- World Equity Group, Inc.
- Great Point Capital, LLC
- LightPath Capital, Inc.
- Landolt Securities, Inc.
- Centaurus Financial, Inc.
- IBN Financial Services, Inc.
- Dempsey Lord Smith, LLC
A firm’s name on this list does not mean it sold shares to any particular investor.
Broker Due Diligence Obligations
A brokerage firm must investigate a private placement before selling it. That means looking into the sponsor, its track record, and the fund’s business plan. Under Regulation Best Interest, a broker also needs a reasonable basis to believe the investment is right for each customer.
Shopoff DHS Industrial Development Fund Lawsuit Options
Investors who lost money may be able to recover it by filing a claim against the brokerage firm that recommended the fund. Claims often allege unsuitable recommendations, misrepresentation, or failure to supervise. The White Law Group recently filed a FINRA arbitration claim against Centaurus Financial that involves another Shopoff offering.
Contact The White Law Group
The White Law Group is a firm of national securities fraud attorneys with offices in Chicago and Seattle. If a broker recommended Shopoff DHS Industrial Development Fund to you, call (888) 637-5510 for a free consultation, or contact us online. Learn more about how FINRA arbitration works.
Frequently Asked Questions
How do I file a claim to recover money I invested in Shopoff DHS Industrial Development Fund?
You can file a FINRA arbitration claim against the brokerage firm that recommended the fund. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know exists, so these claims generally go to FINRA arbitration instead of court. Arbitration can still result in a monetary recovery.
Why is a private placement like Shopoff DHS Industrial Development Fund riskier than a stock or mutual fund?
Private placements are not registered with the SEC, so investors get far less public information about the fund. Shares have no public market, which means you may have to wait years to get your money back.
Can the brokerage firm be held responsible for my losses?
Yes. A brokerage firm can be liable if it recommended an unsuitable investment or failed to supervise its broker. Firms must monitor their brokers’ recommendations, and a firm that doesn’t may be liable for your losses.
