Shopoff DLV QOZ Fund, LLC: Investor Lawsuits
The White Law Group is investigating potential claims on behalf of investors in Shopoff DLV QOZ Fund, LLC, a Regulation D private placement offering launched in 2020.
About the Shopoff DLV QOZ Fund
According to SEC filings, Shopoff DLV QOZ Fund, LLC is a California-based real estate investment entity formed in 2020 and headquartered in Irvine, CA. The offering sought to raise up to $186 million in equity capital, with a minimum investment of $250,000.
The fund was structured as a Qualified Opportunity Zone (QOZ) investment, which may provide tax advantages to certain investors. However, like many QOZ and private placement investments, the offering carries substantial risk and is generally considered illiquid and speculative.
Project Background
Shopoff DLV QOZ Fund was created to provide equity financing for the Dream Las Vegas hotel and casino, a $545 million development on the Las Vegas Strip, to be managed by Dream Hotel Group and constructed with general contractor McCarthy Building Companies. Raised via a “best-efforts” offering, it promised both speculative upside and tax-deferral benefits tied to QOZ rules.
Recent Developments: Project Fallout Reported
According to an August 28, 2025 report by AltsWire, the Dream Las Vegas project has stalled, with ownership of the partially built site transferred to contractor McCarthy Building Companies through a legal settlement over unpaid bills. Construction reportedly halted in March 2023, when the project was only about 19% complete, limited to early foundational work such as excavation and concrete piling. McCarthy had filed a lien exceeding $40 million, and the eventual transfer occurred via a deed-in-lieu of foreclosure valued at $17.2 million. The future of the site remains uncertain, as McCarthy has not announced any specific redevelopment plans but has stated it will coordinate with Clark County regarding potential approvals.
Key Offering Details – Shopoff DLV QOZ Fund
- Issuer: Shopoff DLV QOZ Fund, LLC
- Type of security: Equity (private placement, Reg D 506(c))
- Total offering amount: $186,000,000
- Estimated sales commissions: $13.6 million
- Minimum investment: $250,000
Brokerage Firms Selling the Fund
Numerous FINRA-registered broker-dealers were listed as participating in the sale of Shopoff DLV QOZ Fund, including:
- Shopoff Securities, Inc.
- Boustead Securities, LLC
- Innovation Partners LLC
- IBN Financial Services, Inc.
- Oak Tree Securities, Inc.
- Infinity Financial Services
- Kalos Capital, Inc.
- IFP Securities, LLC
- Patrick Capital Markets
- Saxony Securities, Inc.
- Ni Advisors
- World Equity Group, Inc.
- International Assets Advisory, LLC
- Third Seven Capital LLC
- Nobles & Richards, Inc.
- Arkadios Capital
- ShareNett Securities LLC
- LifeMark Securities Corp.
- D.H. Hill Securities, LLLP
- Wealthforge Securities, LLC
These firms and their brokers may have been financially motivated to sell the product, given the high commission structure (over $13 million estimated in sales compensation).
Risks of Shopoff and Other Reg D Private Placements
- Illiquidity: Investors may be unable to sell or redeem their shares for years.
- Speculative nature: The success of the fund depends on the performance of underlying real estate projects.
- High fees & commissions: These reduce investor returns and create conflicts of interest.
- Concentration risk: Many investors may not realize they are overexposed to high-risk alternatives.
Investor Recovery Options
Broker-dealers have a duty to ensure that investment recommendations are suitable given an investor’s risk tolerance, net worth, income, and investment objectives. If your financial advisor recommended Shopoff DLV QOZ Fund, LLC and you suffered losses, you may be able to recover damages through a FINRA arbitration claim against the brokerage firm.
The White Law Group’s Investigation
The White Law Group is investigating whether brokerage firms improperly recommended this Fund to retail investors. Our securities fraud attorneys have handled numerous FINRA arbitration cases involving private placement investments, QOZ funds, and Reg D offerings.
Free Consultation
If you are concerned about your investment in Shopoff DLV QOZ Fund, LLC, please contact The White Law Group at (888) 637-5510 for a free consultation.
Frequently Asked Questions – Shopoff DLV QOZ Fund
What is the Shopoff DLV QOZ Fund, LLC?
It is a private real estate investment structured as a Qualified Opportunity Zone fund, launched in 2020, seeking to raise $186 million.
Why is the Shopoff DLV QOZ Fund risky?
These types of private placements are speculative, illiquid, and pay high broker commissions, making them unsuitable for many retail investors.
How can I recover losses from the Shopoff DLV QOZ Fund?
If your financial advisor recommended the investment without properly disclosing the risks, you may be able to file a FINRA arbitration claim against the brokerage firm.
