Soreide Law Group is currently reviewing potential investor claims connected to sales practice violations by securities brokers and financial advisors. One product drawing attention is ASTORIA DST, a private placement structured for real estate investing. Concerns have been raised about how this product was sold and managed, and investors may be facing losses as a result. Below we outline key information about ASTORIA DST, the risks linked to it, and what steps investors might take if they have been harmed.
What is ASTORIA DST?
ASTORIA DST is a Delaware Statutory Trust designed to hold real estate assets. These types of offerings are often promoted to accredited investors or those engaging in 1031 exchanges as a way to diversify into real estate without directly owning property. Investor funds are pooled together and used to acquire commercial properties, with the expectation of generating income and appreciation. While marketed as an alternative to traditional investments, these products are complex and are typically recommended only for sophisticated investors.
Concerns About ASTORIA DST
Recent lawsuits and investigations have raised significant concerns regarding ASTORIA DST. Allegations include the misuse of investor proceeds, with claims that tens of millions of dollars were diverted away from their intended purpose to unrelated deals or personal expenses by individuals tied to the trust. Beyond these allegations, investors should also be aware that DSTs like ASTORIA are inherently risky: they are illiquid, meaning investors often cannot easily sell their interests, and they come with steep upfront commissions. These factors increase the likelihood that investors may not fully realize the returns they were expecting.
Potential Sales Practice Violations
In some cases, brokers and advisors may have recommended ASTORIA DST without properly explaining the risks or ensuring that the investment was appropriate for a client’s financial profile. Common violations include unsuitable recommendations, failure to disclose material risks, and neglecting to conduct adequate due diligence before making the recommendation. Such actions may violate securities rules and open the door for investors to seek recovery through FINRA arbitration or litigation. Investors who relied on their advisors’ representations but later suffered losses should know that they may have legal options.
Did You Sustain Losses By Investing In ASTORIA DST?
Did you experience losses because of investing in ASTORIA DST due to the actions of your financial advisor or securities broker? If so, reach out to Soreide Law Group online or at (888) 760-6552 and speak with a securities attorney about the possibility of recovering your investment losses. Soreide Law Group has helped investors nationwide pursue claims and works on a contingency fee basis, advancing all costs.