Did your financial advisor recommend investing in Vineyard Pearland DST?
The White Law Group is investigating potential claims against brokerage firms that may have unsuitably recommended Vineyard Pearland DST to investors. These types of high-risk, illiquid real estate investments are often sold to retail investors without fully disclosing the risks or considering whether they are appropriate given the investor’s financial situation and objectives.
Valeo Groupe Americas is an affiliate of Valeo Groupe, which offers multinational interests in both senior and student niche housing markets, according to its website.
The company reportedly filed a form D to raise capital from investors for the offering Vineyard Pearland DST. The total offering amount was purportedly $21,000,000.
The Risks of Investing in 1031 DSTs
1031 DSTs are not appropriate for all investors, as they come with a few disadvantages, compared to owning a property outright. 1031 DSTs cannot raise new capital, leaving investors holding the bag if expensive repairs are needed. The investors also have no control over the property, or the ability to make decisions about the property. While the sponsor may welcome feedback from the investor, they don’t allow any actions to be taken by said investor.
Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer when the investor is ready to sell.
Potential Lawsuits to Recovery Financial Losses
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending Vineyard Pearland DST to investors.
Despite the risks of investing in 1031 DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes anunsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation
If you are concerned about your investment in Vineyard Pearland DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.
FAQs
Vineyard Pearland DST is a Delaware Statutory Trust investment reportedly structured to raise $21 million, marketed as a 1031 exchange vehicle for real estate investors.
They are illiquid, highly speculative, and investors have no control over the property. Brokerage firms earn high commissions, which can create conflicts of interest in recommending these investments.
Yes. Investors may be able to pursue claims through FINRA arbitration if their brokers recommended the investment without properly evaluating suitability or disclosing the risks involved.
