S2K Charlotte Multifamily OZ Fund Lawsuit & Complaints
The White Law Group is investigating potential claims involving S2K Charlotte Multifamily OZ Fund LLC, a private opportunity zone fund sold through Third Seven Capital and more than a dozen other brokerage firms. Here is what the fund’s SEC filings show, and what options investors weighing a lawsuit or FINRA arbitration claim may have.
What Is S2K Charlotte Multifamily OZ Fund LLC?
S2K Charlotte Multifamily OZ Fund LLC is a Delaware company formed in 2020 and based in Orlando, Florida. Its sponsor and managing member is S2K Charlotte Sponsor LLC, and S2K Charlotte Manager LLC serves as investment manager. The fund was set up as a qualified opportunity zone fund, a structure built around tax benefits for investors with capital gains. The fund’s Form D lists its industry as commercial real estate.
S2K Charlotte Multifamily OZ Fund Offering Terms
According to the amended Form D filed in June 2025, the offering terms are:
- Exemption: Rule 506(c) of Regulation D
- Total offering: $55,000,000
- Amount sold: $31,550,332 to 107 investors
- Amount remaining: $23,449,668
- Minimum investment: $100,000
- Date of first sale: December 29, 2021
- Estimated selling costs: up to $5,500,000
The selling costs include up to $3,850,000 in commissions to the brokerage firms that sold the fund. They also include up to $1,650,000 in managing dealer fees to S2K Financial LLC. Together, that is about 10% of the full $55 million raise.
Brokerage Firms That Sold S2K Charlotte Multifamily OZ Fund
The Form D names S2K Financial LLC as managing dealer. It also lists these firms as receiving sales compensation:
- Alexander Capital, L.P.
- AAG Capital, Inc.
- Arkadios Capital
- Ausdal Financial Partners, Inc.
- Capulent, LLC
- Colliers Securities LLC
- DMK Advisor Group, Inc.
- Emerson Equity LLC
- FNEX Capital LLC
- G.A. Repple & Company
- Great Point Capital LLC
- Green Vista Capital, LLC
- Moloney Securities Co., Inc.
- Peak Brokerage Services, LLC
- Third Seven Capital LLC
- Vanderbilt Securities LLC
Broker Due Diligence Obligations
A brokerage firm must investigate a private placement before it recommends one to customers. That means looking at the sponsor, the business plan, the fees and the risks, not just repeating the offering materials. The firm must also make sure the investment fits each customer’s finances, goals and tolerance for risk. A $100,000 minimum and a long holding period put that question front and center.
Risks of Opportunity Zone Private Placements
Opportunity zone funds are illiquid. There is no public market for the shares, and investors generally must hold for many years to get the full tax benefit. Multifamily development also carries construction, lease-up and financing risk, and the sponsor controls how the investment is valued along the way. Selling costs of up to 10% mean less of each dollar goes to work in the property.
Recovering S2K Charlotte Multifamily OZ Fund Losses
If a broker recommended this fund without explaining the risks, or put you in it when it did not fit your situation, you may be able to recover your losses. Brokerage firms are responsible for the recommendations their brokers make. Claims against them are usually brought through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle. If you invested in S2K Charlotte Multifamily OZ Fund and have concerns, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I invested in S2K Charlotte Multifamily OZ Fund?
Most investors file a claim against the brokerage firm that sold them the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, so these claims usually go through FINRA arbitration instead of court. Arbitration can still result in a money award or settlement.
When is an opportunity zone fund unsuitable for an investor?
It is unsuitable when it does not fit the investor’s age, income, net worth, need for cash or risk tolerance. A fund that ties up $100,000 or more for years can be a poor fit for retirees or anyone who may need that money. Concentrating too much of a portfolio in one illiquid fund can also make a recommendation unsuitable.
Can a brokerage firm be held responsible for my losses?
Yes, a brokerage firm can be liable for an unsuitable recommendation or for failing to do proper due diligence on the product. Firms also have a duty to supervise their brokers. A firm that sold the fund and collected commissions on it may be responsible for losses that resulted.
