BR DeSota DST Lawsuit: Securities Investigation & Investor Claims

BR DeSota DST Lawsuit: Help for Investors

Are you concerned about your investment in BR DeSota DST? The White Law Group is currently investigating potential FINRA arbitration claims involving brokerage firms that may have improperly recommended this high-risk DST investment to clients.

What is BR DeSota DST?

BR DeSota DST is a Delaware Statutory Trust offering sponsored by BlueRock Value Exchange. According to SEC filings, the firm filed a Form D in 2019 to raise approximately $37.2 million from investors. The estimated fees and commissions totaled more than 6% of the offering amount.

Designed for 1031 exchange investors, DSTs like this one are marketed as passive real estate investments with potential monthly income and tax-deferral benefits. However, they come with notable risks and limitations that are not suitable for every investor.

Risks Associated with 1031 DST Investments

While some investors may benefit from DSTs, these investments are often illiquid and come with structural challenges, including:

• Inability to raise additional capital after closing the offering, which can lead to issues if repairs or unforeseen expenses arise.
• Limited investor control over property management or decision-making.
• Illiquidity – DST interests are difficult to sell prior to a property liquidation event.

These characteristics make DSTs unsuitable for many retail investors, particularly those who may need access to their capital or prefer more transparent control over their assets.

BR DeSota DST Complaints & Broker Responsibility

The White Law Group is reviewing whether the brokerage firms that sold BR DeSota DST conducted adequate due diligence before offering the investment to clients. Financial advisors are required to ensure that any investment they recommend is suitable based on a client’s age, income, risk tolerance, and investment goals.

Despite the inherent risks, some firms continue to recommend DSTs due to the high commissions associated with their sale—often exceeding 6%. If your advisor failed to disclose these risks or pushed this investment without regard to your financial profile, you may have grounds for a FINRA arbitration claim.

Can You Recover Investment Losses in BR DeSota DST?

Through FINRA arbitration, investors can potentially recover losses due to unsuitable investment recommendations or lack of risk disclosure. The White Law Group has experience representing clients in claims involving high-risk private placements and DST offerings nationwide.

Contact Us for a Free Consultation

If you are concerned about your investment in BR DeSota DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free case evaluation.

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

For more information about our firm and investor recovery services, visit https://whitesecuritieslaw.com.

Frequently Asked Questions

1. What is the current status of the BR DeSota DST lawsuit?

While there is no public class action lawsuit at this time, The White Law Group is investigating individual arbitration claims for investors who were misled or improperly advised about the investment.

2. What are my options if I lost money in BR DeSota DST?

You may be able to file a claim through FINRA arbitration to pursue compensation from the brokerage firm that sold you the investment, especially if it was unsuitable based on your financial situation.

3. Why are DSTs like BR DeSota DST considered risky?

DSTs are generally illiquid and offer little to no investor control. They can be vulnerable to market changes, occupancy drops, and unexpected repair costs, and are therefore unsuitable for many conservative investors seeking capital preservation or liquidity.