CX Liberty Mill DST: Investor Lawsuit Investigation
The White Law Group is investigating potential securities claims involving CX Liberty Mill DST. We are reviewing whether brokerage firms unsuitably recommended this complex investment to clients without properly disclosing the risks. If you suffered losses, you may be able to recover damages through a FINRA arbitration claim.
About CX Liberty Mill DST
Carter Exchange reportedly sponsors and manages 1031 DST properties, along with investments in multifamily, office, industrial, retail, healthcare, and specialty sectors. According to SEC filings, CX Liberty Mill DST of Tampa, Florida filed a Form D in 2019 to raise capital from investors. The total amount sold was purportedly $65,885,176, according to the Reg D filing.
Risks of CX Liberty Mill DST
Although Delaware Statutory Trusts are often marketed as tax-advantaged, passive real estate investments for 1031 exchanges, they are not suitable for every investor. Risks include:
- Property Value Decline: Like any real estate, values may drop, impacting investor returns.
- Illiquidity: DST interests are difficult to sell, with no established secondary market.
- Distribution Risks: Unexpected vacancies or operational costs can result in suspended or reduced distributions.
- Tax Risks: Unfavorable tax rulings could eliminate capital gains deferrals.
- High Fees: Commissions and management fees may reduce investor profits.
Broker Liability for DST Recommendations
Brokers and financial advisors have a duty to ensure that investment recommendations are suitable for each client. Unfortunately, many firms continue to promote DSTs because of the high commissions associated with their sale. If your advisor failed to disclose the risks of CX Liberty Mill DST, they may be held liable for your losses in a FINRA arbitration claim.
Options for Recovery
FINRA provides an arbitration forum for investors to pursue recovery of losses caused by unsuitable investment recommendations. The White Law Group has handled more than 800 FINRA arbitration cases nationwide and may be able to help you. Learn more about FINRA arbitration.
Free Consultation with a Securities Attorney
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. If you are concerned about your investment in CX Liberty Mill DST, please call The White Law Group at 888-637-5510 for a free consultation.
FAQs about CX Liberty Mill DST
Are DSTs like CX Liberty Mill suitable for all investors?
No. DSTs are generally only suitable for accredited investors with a high risk tolerance, given their illiquidity and concentration risks.
What investor complaints have been reported?
Common allegations include suspended distributions, inadequate risk disclosure, and overconcentration in illiquid alternative investments.
How do I know if I have a claim?
If your broker misrepresented the investment, failed to disclose material risks, or recommended it without assessing suitability, you may have a claim and could pursue recovery through FINRA arbitration.
