Written by The White Law Group• June 26, 2023• 2:25 pm• Investment Loss Recovery

The Dominion – Conroe, TX, DST Investigation

Investigating Potential Claims involving Griffin Capital’s The Dominion – Conroe, TX, DST

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Griffin Capital’s The Dominion – Conroe, TX DST to investors.

Table of Contents

According to SEC filings, Griffin Capital, based in El Segundo, CA, filed a Form D to raise capital from investors for the offering The Dominion – Conroe, TX DST. The total offering amount sold was purportedly $24,858,428 according to the Reg D Filing.

There are several reasons why Delaware Statutory Trusts, or DSTs, are a risky investment. Although DSTs may be suitable for some investors, they are not the best option for everyone due to their disadvantages. One example is how 1031 DSTs cannot raise additional capital after the initial investment, which means that investors may be responsible for unexpected expenses, such as repairs, or a decrease in occupancy or rental income. The investors also have limited control over the property. While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor. The issue of illiquidity is also a primary concern when it comes to investing in a DST. This makes it difficult to find a buyer if an investor wants to sell their interest prior to sale of the property.
For more information on the risks of 1031 DST investments please see: 1031 Delaware Statutory Trust (DST) Investments Overview

Is a 1031 DST Investment Suitable For You?

A financial advisor should analyze the suitability of investments before recommending them to their clients. There are several factors that should be taken into account to ensure an investment would be suitable for their clients. Some of those details include, liquidity needs, time horizon, risk tolerance, age, and income. Once that is completed the brokerage firm must ensure that due diligence was completed at every level of each investment. Consider all aspects of the investment and diligently review your options prior to investing in a DST.

Investors May Have Claims to Recover Financial Losses

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors. Brokerage firms continue to push this type of investment despite the risks of investing in DSTs, because of the high commissions associated with their sale and creation. It is important to note that 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.