Florida Retiree Files FINRA Claim Against Arkadios Capital Over DST Private Placement Losses
The White Law Group has filed a FINRA arbitration claim against Arkadios Capital on behalf of a Florida retiree. According to the Statement of Claim, the retiree’s broker allegedly recommended unsuitable Delaware Statutory Trust (DST) private placements, including NexPoint Small Bay I, DST, CAI Investments Manufacturing Essential Asset DST, and NLCA DG Investment Grade Portfolio I, DST. The claimant is seeking damages of $500,000 to $1,000,000. Investors who bought DST private placements through Arkadios Capital and lost money can talk to our FINRA arbitration attorneys about their options.
What the Claim Alleges Against Arkadios Capital
The claim alleges the broker steered a retired investor into several illiquid DST private placements without properly weighing the retiree’s age, income needs, risk tolerance, or need to access their money. It also alleges that Arkadios Capital, as the FINRA member firm responsible for supervising the broker, failed to stop the recommendations.
DST Private Placements Named in the Claim
The claim identifies these DST investments as having been recommended to the claimant:
- NexPoint Small Bay I, DST
- CAI Investments Manufacturing Essential Asset DST
- NLCA DG Investment Grade Portfolio I, DST
DSTs are private placements, usually sold to accredited investors completing 1031 exchanges. Investors typically cannot sell their interests on a market, have no say in how the property is run, and may wait years to get their money back. Those traits make DSTs a hard fit for most retirees.
Managing Partner Statement
“We think there may be other investors who were sold DST private placements and don’t realize they have recourse,” said Dax White, managing partner of The White Law Group. “A retiree needs stability and access to their savings. Locking that money into illiquid real estate deals is often the opposite of what the investor was told to expect.”
Can Arkadios Capital Be Held Responsible?
Brokerage firms must supervise the recommendations their registered representatives make. If a firm fails to catch unsuitable sales, it may be liable for the losses that follow, even if a broker made the recommendation.
Recovering Losses From DST Private Placements
Investors who were sold unsuitable DST private placements may be able to recover losses through FINRA arbitration. The White Law Group is looking into potential claims for other investors who worked with this broker or firm and were recommended similar DST offerings.
Contact The White Law Group
The White Law Group is a team of national securities fraud attorneys with offices in Chicago and Seattle. If you invested in DST private placements through Arkadios Capital and have losses, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through Arkadios Capital?
Most brokerage account agreements typically include a pre-dispute arbitration clause, so claims like this usually go through FINRA arbitration instead of court. Many investors don’t know that clause exists, and arbitration can still lead to a monetary recovery.
2. Why are DST private placements risky for retirees?
DSTs are illiquid, so retirees may not be able to sell or cash out when they need money. They also often depend on a single property or small group of properties, which concentrates risk.
3. Can Arkadios Capital be held responsible for my losses even if it didn’t approve the investment?
Yes, a firm may be liable for failing to supervise its brokers. Firms have a duty to review the recommendations their representatives make, and a lapse in that review can create liability.
