Great Point Capital Lawsuit: DST FINRA Claim
The White Law Group has filed a FINRA arbitration claim against Great Point Capital on behalf of a retiree from New York. According to the Statement of Claim, the retiree’s broker allegedly recommended unsuitable investments, including several Delaware Statutory Trust (DST) offerings. The claimant is seeking damages of $500,000 to $1,000,000. Investors who bought DSTs or similar investments through Great Point Capital and lost money can talk to our FINRA arbitration attorneys about their options.
What the Claim Alleges Against Great Point Capital
The claim alleges the broker put a retiree into a group of illiquid, higher-risk investments without properly weighing the retiree’s age, income needs, or need to reach their money. It also alleges Great Point Capital, the FINRA member firm responsible for supervising the broker, failed to stop the recommendations.
DST and Other Investments Named in the Claim
The claim identifies these investments as having been recommended to the claimant:
- CAI Manufacturing Essential Asset DST
- Exchange Right Net-Leased Portfolio 62, DST
- LRT Hardeeville Senior Living, DST
- Resource Royalty XX, LLC
- InCommercial Motor Fuel Fund II, LLC
- MCG Preferred Opportunity Fund, LLC
Three of these are DSTs. The others are LLCs. DSTs are usually sold to accredited investors completing 1031 exchanges, and investors typically cannot sell their interests on a market.
Managing Partner Statement
“Retirees rely on their savings for income, and they need to be able to get at that money,” said Dax White, managing partner of The White Law Group. “Spreading it across this many illiquid alternative investments is hard to justify. We believe there may be other investors who were sold similar investments and don’t realize they have recourse.”
Can Great Point Capital Be Held Responsible?
Brokerage firms must supervise the recommendations their registered representatives make. If a firm fails to catch an unsuitable sale, it may be liable for the losses that follow, even if a broker made the recommendation.
Recovering Losses From DST and Alternative Investments
Investors who were sold unsuitable DSTs or other alternative investments may be able to recover losses through FINRA arbitration. The White Law Group is looking into potential claims for other investors who bought similar investments through this broker or firm.
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 DSTs or other alternative investments through Great Point 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 Great Point 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 can DSTs and similar alternative investments be unsuitable for a retiree?
They are illiquid, so a retiree may not be able to sell when they need cash. Many also depend on a single property or business, which concentrates risk.
3. Can Great Point 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 what their representatives recommend, and a lapse in that review can create liability.
