BR Gate DST Lawsuits– Investigating Investor Complaints

BR Gate DST –Securities Investigation – Help for Investors

The White Law Group is investigating potential securities lawsuits involving BR Gate DST, a private placement investment. The securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.  

Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.  

According to its website, Bluerock Value Exchange (“BVEX”) is a national sponsor of syndicated 1031 exchange offerings. The company reportedly filed a form D in 2019 to raise capital from investors for the offering, BR Gate DST, according to a filing with the SEC. The total offering amount was purportedly $, 33,313,906 with sales commissions and fees estimated at close to 10% of the offering amount. 

Risk Factors related to a 1031 DST Private Placement 

Property Value Loss – All real estate investments have the potential to lose value over time.  

Possibility of Foreclosure – All financed real estate investments have potential for foreclosure.  

Illiquid Investments – 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.  

Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.  

Tax Status Changes – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities.  

Fees/Expenses – Investors’ returns may be affected by the costs associated with the transaction. and may outweigh the tax benefits.  

FINRA Lawsuits to Recover Financial Losses  

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk DST investments to investors.  

Despite the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.  

Fortunately FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.  

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:

• FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.
• Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.

Free Consultation

If you are concerned about your investment in BR Gate DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation. For more information on 1031 DST investments please see:  

 The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  

Frequently Asked Questions about BR Gate DST Lawsuits

1. What is the difference between a BR Gate DST lawsuit and a FINRA arbitration claim?

A traditional lawsuit takes place in state or federal court and can take years to resolve. In contrast, a FINRA arbitration is a faster, more streamlined process specifically for resolving disputes between investors and brokerage firms. Most claims involving unsuitable DST recommendations are pursued through FINRA arbitration, not class actions.

2. Can I recover my losses from a DST if my broker failed to perform proper due diligence?

Yes. If your financial advisor failed to conduct adequate due diligence before recommending this DST, or if they did not properly disclose the risks, you may be eligible to recover losses through a FINRA arbitration claim. Brokerage firms have a duty to vet investments and ensure suitability for each client.

3. What can I do if I believe I was misled by my financial advisor?

If you suspect that your advisor failed to disclose the full risks of an investment or recommended something unsuitable for your situation, you may have grounds to file a FINRA arbitration claim. This process allows investors to seek compensation for their losses directly from the brokerage firm. Consulting with an experienced securities attorney is the first step in determining whether you have a viable claim.