James Poindexter Faces McDermott Investment Services Investor Dispute About Unsuitable Advice

Investors might have sustained losses due to securities broker James Michael Poindexter [CRD: 1867899, Prescott, Arizona], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Poindexter has been registered with McDermott Investment Services LLC since January 3, 2019, and Independent Wealth Network Inc. since October 2, 2017. Keep reading to learn more about his disclosures.

McDermott Investor Accused James Michael Poindexter Of Breach Of Fiduciary Duty, Negligence

Evidently, multiple McDermott Investment Services customers filed FINRA Arbitration No. 26-00319 concerning James Michael Poindexter on February 9, 2026. The customers accused Poindexter of misrepresenting or withholding important facts, failing to supervise, acting negligently, breaching fiduciary and contractual duties, and giving unsuitable advice without sufficient due diligence. The customers used several tax-deferred 1031 exchanges to acquire nine Delaware Statutory Trusts (DSTs) between 2021 and 2023, reinvesting prior property investments. Three DSTs later fell short of expectations, leading to this dispute. The customers sought $624,000 in alleged damages. On July 2, 2026, the dispute was settled by the securities broker dealer. According to the BrokerCheck report for Poindexter, he denies the allegations.

What Does Unsuitable Advice In DSTs Mean?

Unsuitable advice involving DSTs can arise when financial professionals recommend real estate investments without adequately considering customers' financial circumstances, goals, liquidity needs, or tolerance for risk. These investments may involve limited resale options, unpredictable distributions, property expenses, and market volatility. Advisors should explain material risks so customers can evaluate whether an investment suits them. DSTs may also use mortgage financing, which can amplify losses if property values decline. Investors have little control over management decisions and must rely on the sponsor to oversee operations.

Did You Sustain Losses Because Of James Michael Poindexter?

Did you experience losses because of James Michael Poindexter? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Poindexter and brokerage firms Poindexter worked for deny accusations of sales practice violations.