Epoch Fort Collins DST: Securities Investigation 

Epoch Fort Collins DST: Investor Lawsuit Investigation

Securities Investigation by National FINRA Arbitration Attorneys – The White Law Group

The White Law Group is currently investigating potential FINRA arbitration claims involving Epoch Fort Collins DST, amid concerns that some broker-dealers may have unsuitably recommended the investment to clients.

DSTs are often marketed to 1031 exchange investors seeking passive income, but these complex real estate offerings may carry significant risks that are not always fully disclosed. If your financial advisor recommended Epoch Fort Collins DST without ensuring the investment was appropriate for your financial situation and risk tolerance, you may have recourse through FINRA arbitration.

Epoch Fort Collins DST Overview

Epoch Fort Collins DST, sponsored by Valeo Groupe Americas, reportedly filed a Form D in 2021 to raise capital for the investment offering, according to SEC filings. The total stated offering amount was approximately $23,100,000.

As with many DST programs, Epoch Fort Collins DST was offered to investors—often retirees—seeking tax deferral through a 1031 exchange. Unfortunately, these investments can be more speculative than many investors realize.

What is a 1031 DST? – Complex, High-Risk Investments

DSTs (Delaware Statutory Trusts) are frequently pitched as a hands-off real estate option for 1031 exchange investors, often with the promise of:

• Potential passive income

• Diversification

• No landlord responsibilities

However, DSTs come with significant risks that may make them unsuitable for many retail investors.

Risks of Epoch Fort Collins DST and Other DST Investments

1. Illiquidity

DSTs are highly illiquid and typically sold through Reg D private placements. There is no secondary market, meaning investors may be unable to sell if they need access to cash.

2. Loss of Property Value

Like all real estate investments, DST properties may decline in value due to market changes, economic downturns, or mismanagement.

3. Reduced or Suspended Distributions

If the property experiences high vacancy, operational issues, or unexpected repairs, monthly distributions may be reduced or eliminated entirely.

4. Tax Risk

DSTs depend heavily on their tax-deferred status. If the IRS determines that the structure does not qualify, investors could face immediate capital gains taxes.

5. High Fees and Commissions

Upfront fees, selling commissions, and ongoing management expenses often result in reduced investor returns. These high commissions may incentivize brokers to recommend DSTs even when unsuitable.

Were You Unsuitably Sold Epoch Fort Collins DST?

Brokerage firms are required to ensure that investments they recommend are in line with the investor’s objectives, risk tolerance, liquidity needs, and overall financial profile. Because DSTs are risky, illiquid, and complex, they may be unsuitable for:

• Retirees

• Conservative investors

• Those needing access to principal

• Investors relying on consistent income

If your broker failed to adequately disclose the risks or recommended Epoch Fort Collins DST despite its unsuitability, you may be able to file a FINRA arbitration claim to recover your losses.

Class Action vs. Individual FINRA Arbitration

Investors often ask whether they should pursue a class action lawsuit or an individual arbitration claim.

• Class actions are typically best for small, uniform claims.

• Individual FINRA arbitration is usually more effective for large losses (e.g., over $100,000) and allows a more tailored approach to the specific misconduct in your account.

Most DST-related claims are pursued through individual arbitration.

Free Consultation with DST Investment Attorneys

If you invested in Epoch Fort Collins DST and are worried about your losses or the recommendation you received, contact The White Law Group at 888-637-5510 for a free case evaluation.

Our national securities fraud and FINRA arbitration attorneys can help you understand your legal options and determine whether you may be able to recover your losses.

For additional information on DST investments, see our guide: 1031 Delaware Statutory Trust (DST) Investments Overview.

Frequently Asked Questions (FAQs)

1. Why are DST investments like Epoch Fort Collins often unsuitable for retirees?

DSTs are long-term, illiquid, speculative real estate investments. Retirees often need flexibility, liquidity, and lower risk—making DSTs inconsistent with typical retirement income needs unless recommended with full risk disclosure.

2. Can I recover losses from Epoch Fort Collins DST through FINRA arbitration?

Possibly. If your broker recommended the investment without properly assessing your suitability or failed to disclose the risks, you may be able to pursue a claim through FINRA arbitration against the brokerage firm.

3. What documents should I gather for a potential DST claim?

Collect your subscription agreement, risk disclosures, account statements, correspondence with your advisor, and any marketing materials you received. These will help attorneys evaluate the strength of your claim.