Written by The White Law Group• August 2, 2025• 2:24 pm• Blog, Current Investigations

Moody Mosaic DST: Securities Investigation

Securities Investigation: Moody Mosaic DST, featured by top securities fraud attorneys, the White Law Group

Investigating Potential Claims involving Moody Mosaic DST

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Moody Mosaic DST to investors. If you have suffered investment losses you may be able to file a FINRA claim against your brokerage firm.

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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.

According to SEC filings, Moody Mosaic DST, based in New York, NY, filed a Form D to raise capital from investors. The total offering amount sold was purportedly $20,140,000, according to the Reg D filing. The sales commissions and fees were estimated at more than 6% of the total offering amount.

Risks of Investing in DSTs

DSTs like Moody ELM AL North Austin DST carry a number of risks, including:

Illiquidity – Investors generally cannot sell DST interests on a secondary market.
High Commissions – Broker-dealers often earn 7–10% in selling fees, creating potential conflicts of interest.
Tenant and Market Risk – If the underlying property loses tenants or declines in value, investors may suffer losses.
Concentration Risk – Many DSTs are tied to a single property or sector, increasing exposure to localized downturns.
Lack of Transparency – Private placement offerings are exempt from SEC registration, meaning less public information is available to investors.

These risks may make DSTs unsuitable for conservative investors or those seeking liquidity and preservation of capital.

For more information on the risks of 1031 DST investments please see: 1031 Delaware Statutory Trust (DST) Investments Overview

Frequently Asked Questions

1. What is Moody ELM AL North Austin DST?
It is a Delaware statutory trust sponsored by Moody National, designed to provide passive real estate investment opportunities, often used in 1031 exchange transactions.

2. Are DSTs like Moody ELM AL North Austin DST safe investments?
DSTs are high-risk, speculative investments. They may offer tax deferral benefits, but they lack liquidity, often pay high upfront commissions, and may expose investors to significant losses.

3. How can I recover losses from a DST investment?
If your financial advisor or broker recommended the investment improperly, you may be able to recover losses through a FINRA arbitration claim against the brokerage firm.

If you are concerned about your investment in Moody Mosaic 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.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.