FINRA Claim Filed Against WealthForge Securities Over CF Net Lease Portfolio II, CF Net Lease Portfolio III, and REVA Kay 150 Corporate DST Losses
The White Law Group has filed a FINRA arbitration claim against WealthForge Securities, LLC on behalf of a retiree, alleging the Richmond, Virginia-based brokerage firm recommended unsuitable investments in three Delaware Statutory Trusts (DSTs): CF Net Lease Portfolio III, CF Net Lease Portfolio II, and REVA Kay 150 Corporate DST among others. The claim, filed July 30, 2026, seeks damages of between $100,000 and $500,000. Investors who believe a broker recommended an unsuitable DST investment may want to speak with a FINRA arbitration attorney about their options.
The FINRA Claim Against WealthForge Securities
According to the Statement of Claim, the claimant alleges his broker at WealthForge Securities recommended he place a significant portion of his retirement savings into illiquid, high-commission DST offerings that were allegedly unsuitable given his age, income needs, and liquidity requirements. The claim alleges that WealthForge Securities and its representative failed to conduct adequate due diligence and failed to reasonably explain the risks of the DST offerings before recommending them.
WealthForge Securities, LLC (CRD #152550) is a broker-dealer headquartered in Richmond, Virginia, that has been involved in the distribution of numerous private placement and DST offerings.
“Retirees often depend on their savings for income they can access when they need it, not a product that locks up their money for a decade,” said Dax White, Managing Partner of The White Law Group. “When a brokerage firm recommends an illiquid, high-commission DST without regard for a client’s age, health, or liquidity needs, that recommendation deserves scrutiny under FINRA’s suitability rules, and we intend to hold WealthForge Securities accountable for the losses alleged in this claim.”
About the DST Investments at the Center of the Claim
CF Net Lease Portfolio III DST was a Delaware Statutory Trust offering sponsored through a Cantor Fitzgerald-affiliated entity. According to a Form D filed with the SEC in 2017, the offering sought to raise more than $45 million from investors. The White Law Group has previously investigated potential claims involving CF Net Lease Portfolio III DST on behalf of other investors.
CF Net Lease Portfolio II DST was a related net-lease DST offering marketed to 1031 exchange investors seeking replacement property for deferred capital gains. As with other DST offerings in the CF Net Lease Portfolio series, investors typically had no ability to control property management, refinancing, or sale decisions once they purchased an interest.
REVA Kay 150 Corporate DST was sponsored by Real Estate Value Advisors and, according to Regulation D filings, raised approximately $3.8 million from investors after launching in 2017. Sales compensation on the offering was reportedly paid to WealthForge Securities and Colorado Financial Services. The White Law Group has previously investigated claims involving REVA Kay 150 Corporate DST on behalf of other investors.
What Are Delaware Statutory Trusts (DSTs)?
A Delaware Statutory Trust is a legal entity commonly used to hold title to real estate on behalf of multiple investors, frequently in connection with Section 1031 tax-deferred exchanges. Investors purchase a fractional beneficial interest in the trust rather than the underlying property directly. DST sponsors typically retain full control over property management, leasing, refinancing, and the timing of any sale, leaving individual investors with little to no say in how the investment is operated.
The Risks of DST Investments
DSTs are often marketed to retirees and 1031 exchange investors as a passive, hands-off way to hold real estate, but they carry significant risks that may not be suitable for every investor, including:
- Illiquidity. DST interests are generally illiquid, with holding periods that can run seven to ten years or longer and no established secondary market for early resale.
- High upfront costs. DST offerings frequently carry substantial upfront selling commissions and fees, which can reduce the capital actually available to generate returns.
- Loss of control. Investors cannot vote on leasing, refinancing, capital improvements, or the decision to sell the underlying property; those decisions rest solely with the sponsor.
- Concentration and market risk. Many DSTs hold a small number of properties, or even a single property, which can expose investors to significant concentration risk tied to one tenant, market, or property type.
- Sponsor and tenant dependency. Returns depend heavily on the financial strength of the sponsor and the underlying tenants; a tenant default or sponsor financial difficulty can directly impact investor distributions.
- Suitability concerns for older investors. FINRA treats DSTs as non-conventional investments, meaning brokerage firms have heightened obligations to evaluate whether a DST’s long, illiquid holding period is appropriate for an investor’s age, health, income needs, and time horizon before recommending it.
FINRA Arbitration: How Investors May Be Able to Pursue Recovery
Most brokerage customer agreements require investment disputes to be resolved through FINRA arbitration rather than in court. Under FINRA Rule 2111, brokerage firms and their representatives are required to have a reasonable basis for believing that a recommended investment is suitable for a particular customer, based on factors such as the customer’s age, financial situation, investment objectives, and liquidity needs. When a firm recommends an illiquid, high-commission product like a DST to a retiree without adequate regard for those factors, the investor may have grounds to pursue a FINRA arbitration claim against the firm and the broker who made the recommendation.
Investors who purchased CF Net Lease Portfolio III, CF Net Lease Portfolio II, REVA Kay 150 Corporate DST, or other DST offerings through WealthForge Securities and have concerns about how those investments were recommended may want to speak with a FINRA arbitration attorney to discuss their options.
Frequently Asked Questions
1. What is a FINRA arbitration claim?
A FINRA arbitration claim is a formal dispute filed with the Financial Industry Regulatory Authority in which an investor alleges that a brokerage firm or broker engaged in misconduct, such as recommending an unsuitable investment, and seeks monetary damages. Most brokerage account agreements require these disputes to go through FINRA arbitration rather than a traditional lawsuit.
2. Why might a DST investment be considered unsuitable for a retiree?
DSTs are illiquid, typically require a multi-year holding period, and offer investors no control over the underlying property. For a retiree who may need access to income or principal, an illiquid, long-term, high-commission investment like a DST can be inappropriate, particularly if it makes up a large percentage of that investor’s overall portfolio.
3. What can investors who lost money in a WealthForge Securities DST recommendation do?
Investors who believe they were sold an unsuitable DST investment through WealthForge Securities may be able to pursue a FINRA arbitration claim to seek recovery of their losses. An initial consultation with a securities attorney can help investors understand whether their circumstances may support a claim.
The White Law Group is a national securities fraud law firm representing investors in FINRA arbitration claims, with offices in Chicago and Seattle. If you invested in CF Net Lease Portfolio III, CF Net Lease Portfolio II, REVA Kay 150 Corporate DST, or another DST offering recommended by WealthForge Securities and have concerns about your investment, contact The White Law Group at (888) 637-5510 for a free consultation, or visit our contact page to get started.
