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Written by 2:46 pm Blog, Current Investigations

Inland New York Grocery DST: Securities Investigation

Inland New York Grocery DST

Investigating Potential Claims involving Inland New York Grocery DST

The White Law Group is investigating the liability that brokerage firms may have for unsuitably recommending  Inland New York Grocery DST to investors.

Inland New York Grocery DST filed a Form D in 2014 in Oakbrook, IL. The type of securities offering is “beneficial interests in Delaware Statutory Trust reflecting beneficial interests in real estate.”  The investment was structured as a Delaware Statutory Trust (DST) designed to qualify as a replacement property in a 1031 exchange.

Delaware Statutory Trust is a separate legal entity created as a trust under the laws of Delaware in which each owner has a “beneficial interest” in the DST for Federal income tax purposes and is treated as owning an undivided fractional interest in the property.

Is this investment suitable for you?

Companies often raise money through Reg D Private Placement offerings. These investments are complex and high risk. They are not suitable for many investors.

Reg D private placements are not regulated the same way that stocks and bonds are. Additionally, brokers can earn high sales commissions and due diligence fees on these type of investments.  This gives them an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may also focus on the income potential and tax benefits while downplaying the risks. Private placements are also illiquid. It can be difficult to find a buyer when you are ready to sell the investment.

Broker dealers are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If you suffered losses in an unsuitable investment, you may be able to recover your losses by filing a FINRA Arbitration claim. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve such disputes.

Free Consultation

For more information on how you may be able to recover investment losses in Inland New York Grocery DST, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. The firm represents investors throughout the country in claims against their brokerage firm.




Tags: Last modified: March 28, 2024