Moody Village One DST: Securities Investigation

Moody Village One DST: Help for Investors

Are you concerned about your investment in Moody Village One DST? The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Moody Village One DST to investors.

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 Village One DST, based in Houston, Texas, filed a Form D to raise capital from investors. The total offering amount sold to investors was purportedly $52,070,000, according to the   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 Village One 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 

Recovery of Investment Losses

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

If you are concerned about your investment in Moody Village One 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.  

Frequently Asked Questions

1. What is Moody Village One 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 this 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.