EMERSON EQUITY and Former Broker, EHUD GERSTEN Lawsuit 

Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against:

EMERSON EQUITY LLC, and their former registered representative, EHUD GERSTEN (Respondents).

The Claimants owned property for many years that had been used as farmland.  The Claimants eventually sold the property with hopes of passing on the proceeds to future generations. When the property was sold, the Claimants wanted to do everything they could to retain the value and minimize the tax consequences. The lawsuit states that through a tax attorney, the Claimants were connected to EMERSON EQUITY and their former broker, EHUD GERSTEN. 

According to the lawsuit, EMERSON EQUITY's former broker, EHUD GERSTEN allegedly recommended that all of their money from the sale of the farmland be invested into ten “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 Claimants did not want to gamble with this money as the proceeds from the sale of the family farm represented decades of hard work and everything they owned.  The lawsuit states that the investment objectives were capital preservation and income.

The lawsuit alleges EHUD GERSTEN recommended the Claimants invest all their net worth into a single, illiquid, speculative asset class, resulting in extreme overconcentration and lack of diversification. GERSTEN allegedly represented that the DSTs were safe, that distributions were guaranteed, and that principal would be preserved.  EHUD GERSTEN sold them a portfolio of $4,000,000 in DSTs.

The lawsuit alleges that EMERSON EQUITY broker, EHUD GERSTEN recommended investments in the now bankrupt Inspired Healthcare Capital for $800,000.00. GERSTEN also allegedly recommended investing $900,000 into DSTs by Versity, which have also suspended distributions and may also need to file for Chapter 11 bankruptcy soon.

The lawsuit states that of the $4 million in DSTs sold, $1,700,000 have stopped paying any distribution of which the Claimants were relying on to continue in perpetuity. The DSTs Inspired Senior Living Brookhaven and Inspired Senior Living of Carson Valley completely stopped paying distributions and filed for bankruptcy on February 5, 2026.  It is unclear if the two other Versity Investments, Versity Astoria and Veristy Flats at Shadowglen, investments will also file bankruptcy soon. The lawsuit alleges that purchasing multiple DSTs from the same issuer only compounded the credit risk and didn’t serve to diversify their portfolio. It is alleged that GERSTEN enjoyed a commission between $300,000.00 - $600,000.

The lawsuit alleges that EMERSON EQUITY and their former broker, EHUD GERSTEN’s actions have caused damages to the Claimant of an of at least $2,000,000 in principal losses.  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 4 disclosures on his FINRA CRD report, all 4 are pending “Customer Disputes.” Three were filed in 2025, and the allegations listed are, Misleading Recommendations, Violation of Reg BI, Misrepresentation and omissions, Breach of Fiduciary Duty and Negligence.

If your financial advisor recommended a DST that is now failing, you may have legal options to recover losses. If you were sold a DST that is now failing call: 888-760-6552.

Soreide Law Group handles DST cases nationwide and currently have dozens of DST claims pending. There is:

• No upfront cost
• No fees unless money is recovered
• Free case review

Soreide Law Group represents our clients nationwide before FINRA.