Did You Purchase DSTs Through EDWARD E FERNANDEZ?

Soreide Law Group has been contacted by former customers of EDWARD ERIC FERNANDEZ (EDWARD E FERNANDEZ) who purchased DSTs. Fernandez is currently a broker with CAPULENT LLC of Irvine, California since October of 2017.

In addition to the DSTs listed below the DSTs that were also brought to our attention are, Pheonix SFR, and Hayworth Tanglewood.

A Delaware Statutory Trust (DST) can purchase fractional ownership in properties that are 1031 qualified without having to own the whole property.  Given the fractional ownership you maintain, liquidity is a huge challenge to exit the investment as no secondary market exists. Given DST’s tax structure, failed DSTs are prohibited from renegotiating existing loans or seeking new financing or taking on new debt after closing, given they must have a predefined loan term and that can only be renegotiated or refinanced in bankruptcy.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, EDWARD E FERNANDEZ has been in the securities industry for 23 years and was listed with 6 firms.  Fernandez has 5 disclosures on his FINRA CRD report, 4 of the disclosures are “Customer Disputes.” The significance of EDWARD E FERNANDEZ’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, Fernandez’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

The four pending “Customer Disputes” filed against EDWARD E FERNANDEZ were all filed in 2025.  The dispute filed 10/6/2025 alleges, “Claimants allege unsuitable recommendation of a portfolio of three DST investments., the sponsors of which were Crew/Versity and Nelson Partners.”

On 9/19/2025 the dispute filed lists the allegations, “Claimants allege the improper recommendation of the Versity Wolf Run DST in April of 2021. The damage amount requested is $475,000.00.

The dispute dated 8/11/2025 alleges, “Claimants allege unsuitable recommendations of three Versity/Crew investments (Hayworth Tanglewood, DST and Versity Income Property Notes, LLC). The damage amount requested is $10,000.00.

On 6/2/2025 the dispute filed against EDWARD E FERNANDEZ alleges, “Claimant alleges that the respondent breached fiduciary duties by recommending unsuitable investments, over-concentrating the account in illiquid assets, failing to perform adequate due diligence and monitoring, and misrepresenting or failing to disclose material information. Claimant seeks damages for losses allegedly resulting from these actions.” The damage amount requested is $161,250.00.

The four “Customer Disputes” are currently pending and Fernandez denies all allegations in the broker comments.

To discuss this article or any other securities issues contact Soreide Law Group and speak to an experienced securities lawyer at no cost:  888-760-6552.

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