ARKADIOS CAPITAL & Former Broker, EHUD GERSTEN Lawsuit

Soreide Law Group has filed a FINRA arbitration on behalf of their client (Claimant) against:

ARKADIOS CAPITAL and their former registered representative, EHUD GERSTEN (Respondents).

The Claimant lives in Florida and was looking to invest proceeds from the sale of family property that was sold in 2023. The Claimant was looking for safe investments that could generate income to support her through retirement while minimizing taxes. The Claimant was connected to ARKADIOS CAPITAL broker, EHUD GERSTEN, through her 40-year-old daughter who had previously done business with GERSTEN. The lawsuit alleges that EHUD GERSTEN recommended the Claimant invest 84% of the money ($2 million) into “DSTs.” A Delaware Statutory Trust can purchase fractional ownership in properties that are 1031 qualified without having to own the whole property. The lawsuit states that the Claimant needed the most conservative investments to sustain her through her full retirement years.  The lawsuit alleges that EHUD GERSTEN described the DSTs he sold as safe and gave the Claimant confidence in GERSTEN’s recommendations, who then sold her a portfolio entirely of DSTs. The lawsuit alleges that had the Claimant been told the true nature of the risk, such as suspension of distributions and potential bankruptcy, she would never have invested 84% of her inheritance into one asset class. 

According to the lawsuit, ARKADIOS CAPITAL broker, EHUD GERSTEN recommended investments in the now bankrupt Inspired Senior Living DARTMOUTH DST for $300,000.00. In total the lawsuit states the Claimant, through the Respondents, invested $2,000,000.00 into seven different issuances of DST’s. This was all the money she had to live off for the rest of her life and had no means of ever replacing it. The DST Inspired Senior Living Dartmouth completely stopped paying her distributions of $1,375 in July 2025 and filed for bankruptcy on February 5, 2026. It is unclear if the other investments will also default soon.

The lawsuit alleges that ARKADIOS CAPITAL broker, EHUD GERSTEN did not disclose the many risks of the DSTs to the Claimant. GERSTEN enjoyed a commission of more than $150,000.00.

EHUD GERSTEN was with ARKADIOS CAPITAL of Atlanta, Georgia from 07/19/2023 - 03/28/2025. He is currently not registered.

ARKADIOS CAPITAL their former broker, EHUD GERSTEN’s actions have caused damages to the Claimant of an of at least $300,000.  The lawsuit is alleging negligence, breach of fiduciary duty and negligent supervision.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, EHUD GERSTEN has been in the securities industry for 6 years and has been listed with 8 firms. Gersten has 5 disclosures on his FINRA CRD report, all 5 are pending “Customer Disputes.” Some of the allegations listed are, Misleading Recommendations, Violation of Reg BI, Misrepresentation and omissions, Breach of Fiduciary Duty and Negligence. The significance of Gersten’s disclosures is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. In other words, EHUD GERSTEN’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

Soreide Law Group handles DST cases nationwide and currently have dozens of DST claims pending. If your financial advisor recommended a DST that is now failing, you may have legal options to recover losses. Call Soreide Law Group at no cost: 888-760-6552.

Soreide Law Group represents our clients on a contingency fee basis nationwide before FINRA.