Soreide Law Group is reviewing potential investor claims tied to the sales of Buckingham DST and similar products. Our investigation focuses on whether securities brokers and financial advisors followed the rules when recommending these investments to clients. Buckingham DST has become a subject of concern because of information suggesting it may have exposed investors to higher risks than they were led to believe. Below, we provide an overview of the investment and highlight key issues that investors should understand.
What is Buckingham DST?
Buckingham DST is a Delaware Statutory Trust, which is a structure used to pool investor funds into real estate holdings. These trusts are often offered as Regulation D private placements and are sometimes marketed for potential tax advantages, income generation, and diversification. While a DST can appeal to investors looking for real estate exposure without direct property management, these offerings are very different from traditional, liquid securities.
Concerns About Buckingham DST
Some investors have reportedly raised concerns about the way Buckingham DST was marketed and how investor funds may have been handled. According to civil lawsuits, it has been alleged that some of the money raised for the trust was not used as initially promised, but may instead have been directed toward other transactions or even personal benefit. These claims describe alleged misconduct, including possible misappropriation of funds and breach of contract.
Beyond these allegations, it has also been suggested that the investment carries risks: it is said to be generally illiquid, meaning investors might not be able to sell their interests easily, and that brokers may receive high commissions, which could allegedly influence their recommendations. Because of these features, Buckingham DST has been characterized by some as potentially unsuitable for individuals who are not high-net-worth or otherwise considered sophisticated investors.
Sales Practice Violations
Financial professionals must carefully evaluate whether an investment is appropriate for a client’s age, financial situation, and investment objectives. They are also required to disclose important risks and to thoroughly vet the products they recommend. In cases like Buckingham DST, violations may include unsuitable recommendations, incomplete or misleading disclosures, or inadequate due diligence by the firms involved. Investors who have suffered losses because of such actions have the right to pursue claims, often through FINRA arbitration or other legal avenues.
Did You Sustain Losses By Investing In Buckingham DST?
Did you experience losses because of investing in Buckingham DST as a result of advice from your broker or financial advisor? If so, reach out to Soreide Law Group online or call (888) 760-6552 to discuss your situation with a securities attorney. Our firm has helped investors nationwide recover their losses. We handle these cases on a contingency fee basis and advance all costs, meaning you will not owe attorney’s fees unless we successfully recover money for you.