Concerned About Your Investment in Internacional Gatsby DST?
If you have invested in Internacional Gatsby DST and are worried about potential losses, you are not alone. The White Law Group is investigating whether brokerage firms may be liable for improperly recommending this high-risk, illiquid investment to retail investors.
Overview of Internacional Gatsby DST
Internacional Gatsby DST is a Delaware Statutory Trust sponsored by Internacional Gatsby Manager, LLC. It was offered in 2021 to investors seeking to defer capital gains through a 1031 exchange. The offering reportedly sought to raise $40.03 million, according to documents filed with the Securities and Exchange Commission (SEC).
While DSTs can offer tax advantages and potential passive income, they also present risks that may not be suitable for all investors—especially those seeking liquidity or low-risk investment options.
Key Risks of DST Investments Like Internacional Gatsby DST
Though DSTs are often marketed as secure, income-producing real estate options, they come with significant limitations:
- Limited Liquidity – Investors generally cannot sell or exit the DST prior to the conclusion of its lifecycle.
- No Management Control – Investors have no authority over property management or strategic decisions.
- Capital Constraints – DSTs cannot raise new capital if unexpected repairs or operating shortfalls arise.
- High Upfront Fees – Sales commissions and fees are often substantial, estimated at approximately 9.5% in this case (about $3.8 million in commissions on a $40 million raise).
Did Your Financial Advisor Misrepresent This Investment?
Brokerage firms have a duty to perform proper due diligence and ensure investment recommendations are appropriate based on a client’s investment profile—including risk tolerance, financial goals, and overall portfolio. If your financial advisor failed to disclose the risks of Internacional Gatsby DST, or recommended it without considering your needs, you may have legal grounds to recover your losses.
Recovering Losses through FINRA Arbitration
If you believe your advisor failed to adequately explain the risks of Internacional Gatsby DST, you may be eligible to file a FINRA arbitration claim. This forum allows investors to pursue recovery from their brokerage firm due to misrepresentation, unsuitable recommendations, or lack of due diligence.
The White Law Group has handled hundreds of arbitration claims involving DSTs, private placements, and other high-risk alternative investments.
Contact The White Law Group for a Free Consultation
If you have suffered losses investing in Internacional Gatsby DST, contact our securities attorneys today at 888-637-5510 for a free consultation. We represent investors nationwide and operate on a contingency fee basis—you don’t pay unless we recover funds on your behalf.
Learn more at www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) – Internacional Gatsby DST
- What is Internacional Gatsby DST?
It is a Delaware Statutory Trust formed in 2021 and offered by Internacional Gatsby Manager, LLC as part of a 1031 exchange strategy. It was structured as a Reg D private placement for accredited investors.
- Why are DSTs considered high-risk?
DSTs are long-term, illiquid investments that offer no investor control, limited exit opportunities, and high upfront fees. These features can be unsuitable for many retail investors—particularly retirees or those needing regular access to funds.
- What are red flags for unsuitable recommendations?
If your financial advisor didn’t conduct a full risk analysis, assess your financial goals, or disclose liquidity restrictions and fees, the recommendation may have been inappropriate.
- What is FINRA arbitration and how does it help?
FINRA arbitration is a private dispute resolution process allowing investors to pursue claims against brokers or firms without going to court. It is often faster and less costly than traditional litigation.
- How long do I have to file a claim?
Deadlines vary based on when you discovered the issue, so it’s best to consult with an attorney immediately to preserve your rights.
Last modified: July 9, 2025
