Securities Fraud Attorneys Investigating Claims Involving Starboard Arden DST
The White Law Group is investigating potential securities claims involving Starboard Arden DST, a Delaware statutory trust sponsored by Starboard Realty Advisors, LLC. The firm is reviewing whether brokerage firms may have improperly recommended this high-risk investment to retail investors.
According to a Form D filed with the SEC, Starboard Arden DST was launched in 2022 to raise approximately $47.8 million from investors. As of the filing, the trust had raised more than $8.7 million from 20 investors. The offering was made under Rule 506(b) of Regulation D, which exempts the issuer from registering the securities with the SEC but also limits sales to accredited investors and restricts general advertising.
The investment offered was in equity interests in residential real estate, and broker-dealers who marketed the offering reportedly received an estimated $2.86 million in sales commissions—a figure that may create an incentive for financial advisors to recommend the investment despite its risks.
What is a DST Investment?
A Delaware Statutory Trust (DST) is a type of real estate investment that allows investors to own fractional interests in large commercial properties. These investments are often used in 1031 exchanges for deferring capital gains taxes. While DSTs offer potential tax advantages, they are also illiquid, complex, and carry significant risks.
Investors in DSTs typically have limited control over the underlying asset, and once the offering is complete, there is generally no public market for resale. In the case of Starboard Arden DST, approximately $4.3 million of investor funds were reportedly allocated to fees and costs that benefitted insiders, including the sponsor and affiliated entities.
Did Your Financial Advisor Misrepresent the Risks?
The White Law Group is investigating whether the financial advisors who sold Starboard Arden DST failed to adequately disclose the risks of the investment or misrepresented its potential returns. FINRA rules require brokers to perform due diligence on any investment they recommend and to ensure that recommendations are suitable based on each client’s risk tolerance, investment objectives, and financial circumstances.
If your financial advisor unsuitably recommended this DST and you suffered investment losses, you may be able to file a FINRA arbitration claim to recover damages.
How to Recover Investment Losses
If you invested in Starboard Arden DST at the recommendation of your financial advisor and are concerned about losses or misrepresentations, you may have a claim. The White Law Group has successfully handled hundreds of FINRA arbitration cases involving improper real estate investment recommendations.
Free Case Evaluation
To speak with a securities attorney at The White Law Group, please call (888) 637-5510 for a free consultation. You can also visit www.whitesecuritieslaw.com to learn more about our securities fraud investigations and recent case results.
Frequently Asked Questions (FAQs)
What are the risks of investing in a DST like Starboard Arden DST?
DSTs are highly illiquid, have limited secondary markets, offer no control to investors, and often charge substantial upfront fees, which can erode investment returns.
Can I sue my broker for recommending Starboard Arden DST?
If your broker failed to properly explain the risks or made an unsuitable recommendation, you may be eligible to file a FINRA arbitration claim for recovery of losses.
Is The White Law Group currently filing lawsuits against Starboard Arden DST?
The firm is currently investigating the investment on behalf of investors nationwide. While no class action appears to be filed at this time, individual arbitration claims may be possible.
Last modified: July 25, 2025
