Livingston Street Capital LSC-BIO HC1 DST: Investigation

Concerned about your investment in Livingston Street Capital LSC-BIO HC1 DST?

Are you concerned about your investment in LSC-BIO HC1 DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Livingston Street Capital, LLC reportedly sources, sponsors, and distributes real estate investment opportunities through the retail broker dealer channel, according to its website. The company’s investment programs reportedly  focus on real estate utilized to provide necessity-based services and strategic-use properties.

According to SEC filings, the company filed a Form D to raise capital from investors in 2017.  The entity type was purportedly Business Trust and the total offering amount was purportedly $4,453,890.

Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.

Illiquid, Complex Investment

DSTs are not appropriate for all investors, as they come with a few disadvantages, compared to owning a property outright. 1031 DSTs typically 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.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk DST investments to investors.

Despite the risks of investing in 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 an unsuitable 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.

Free Consultation with a Securities Attorney

If you are concerned about your investment in LSC-BIO HC1 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 and Seattle, Washington.