Hayworth Tanglewood DST Investor Alert

Soreide Law Group is currently reviewing potential investor claims tied to possible sales practice violations by securities brokers and financial advisors. One investment drawing attention is the Hayworth Tanglewood DST, a real estate trust that has raised concerns due to recent financial setbacks and legal challenges. Investors should be aware of the risks and adverse developments connected to this offering, which are outlined below.

What is Hayworth Tanglewood DST?

Hayworth Tanglewood DST is a Delaware Statutory Trust created to allow investors to hold fractional ownership in commercial property, often for use in 1031 exchanges. The product was issued by Versity Investments LLC, later renamed Crew Enterprises. As with other DSTs, it was promoted as a way to gain exposure to large-scale real estate projects while generating income. However DST investments are typically illiquid and come with complexities that may not be appropriate for all investors.

Concerns About Hayworth Tanglewood DST

Recent reports for 2025 suggest there may be troubling developments for investors in this trust. It has been claimed that debt service costs could outpace net operating income by around $350,000, which may have led to the suspension of distributions. A preferred equity partner has reportedly filed litigation, alleging that certain loans were not repaid. It has also been reported that attempts to sell the property allegedly produced an $80 million offer—an amount said to be insufficient to provide investors with any return—so the property was apparently withdrawn from the market. In addition, Crew Enterprises and its executives, Blake Wettengel and Tanya Muro, are reportedly facing a separate lawsuit that alleges misuse of over $56 million in investor funds, raising concerns about what some observers describe as possible mismanagement.

Sales Practice Violations

Situations like this often involve questionable conduct by brokers and advisors. Common violations include recommending complex or illiquid products to clients for whom they are unsuitable, misrepresenting the risks, or failing to disclose important details. In some cases, brokers may have been motivated by the high commissions typically associated with alternative investments. Investors who were sold Hayworth Tanglewood DST without a proper assessment of their financial profile may have grounds to pursue compensation through a FINRA arbitration claim or other legal remedies.

Did You Sustain Losses By Investing In Hayworth Tanglewood DST?

Did you experience losses because of investing in Hayworth Tanglewood DST as a result of your broker or advisor’s recommendations? If so, reach out to Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about the potential recovery of your investment losses. Soreide Law Group has helped investors nationwide recover funds and works on a contingency fee basis, meaning the firm only gets paid if a recovery is obtained.