Erez Law is currently investigating brokers across the country who recommended their clients invest in Epoch Fort Collins Delaware Statutory Trusts (DSTs).
Regrettably, as is the case with private placements, investors rely on the recommendations from their investment advisors and brokers and many did not conduct appropriate due diligence to determine suitability for the investments.
What is a DST?
A legally recognized trust, DSTs are typically created with a business purpose in mind, usually to provide parties with a governing agreement to purchase, hold, manage, and administer real estate among investors who own interests in the DST. DSTs provide investors with an opportunity to own an interest in real estate through holdings in a trust. A key benefit of DSTs is investors can generate monthly income, diversify their portfolio, and they do not have to manage the property or associated responsibilities.
For property owners, DSTs can be utilized to defer paying capital gains taxes, through a 1031 exchange, as the sale proceeds are reinvested in a similar in kind real estate investment within 180 days of the closing of the other property.
DSTs are a popular type of private placement that is often marketed as safe, tax-efficient, and income-producing investments that are not subject to the same market instability as securities that are publicly traded. Investors typically can diversify their investments by investing in DSTs with various property types.
DSTs are considered illiquid investments, offered through Reg D private placement offerings. In such, they lack a secondary market, and investors can face challenges in selling the investment.
In reality, DSTs are speculative in nature and do not have the same reporting requirements as publicly-traded securities, which enables the issuers to mask difficulties from investors until it is too late.
Epoch Fort Collins Delaware Statutory Trusts Investment Losses
Investors were required to invest a minimum of $100,000, according to the SEC filing. The issuers of the complex investment products recently notified investors that they are no longer continuing the student housing sector project, due to rising interest rates among other reasons; they will now liquidate the underlying assets. And because they are illiquid investments, investors are unable to sell their interests, and many will face significant investment losses.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokers across the country, including Concorde Investment Services, LLC, may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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