Ernesto Chavez (CRD: 4315877) faces a new pending claim on BrokerCheck over an investment made in 2018. The customer alleges $180,000 in damages, and no arbitrator has ruled on the claim.
Soreide Law Group is currently reviewing potential claims from investors regarding questionable sales practices by securities brokers and financial advisors. One product under scrutiny is SHADOWGLEN DST, a real estate–focused investment vehicle that has drawn attention due to troubling reports and investor risks. Recent information suggests there may be significant concerns about how this product was marketed and managed. Below is a summary of what investors should know.
SHADOWGLEN DST is a Delaware Statutory Trust created as a private placement investment. Like other DSTs, it was structured to acquire and manage real estate properties, with shares sold to accredited investors. These offerings are typically promoted under Regulation D and often appeal to individuals seeking real estate exposure and potential tax advantages. In essence, the trust pools investor funds into property-related ventures while promising passive income opportunities.
Allegations tied to SHADOWGLEN DST have raised red flags for investors. Legal filings allege that money raised through the offering may not have been used as represented, with accusations of misappropriation and diversion of funds for unrelated purposes. Individuals linked to the trust have been named in lawsuits claiming breach of contract, unjust enrichment, and civil conspiracy.
Beyond these allegations, the structure of DST investments carries inherent risks. They are generally illiquid, leaving investors unable to readily sell or redeem their interests. Brokers may also receive unusually high commissions for selling these products, which can reduce returns and create conflicts of interest. These characteristics make DSTs inappropriate for many retail investors, particularly those without substantial investment experience.
Financial advisors and brokerage firms have a duty to recommend only investments that are suitable for their clients’ specific circumstances. Problems arise when brokers fail to explain risks, exaggerate potential benefits, or push high-commission products without considering investor needs. Possible violations include recommending SHADOWGLEN DST without proper disclosure, misrepresenting its safety or income potential, or failing to conduct adequate due diligence. When such misconduct occurs, investors may pursue recovery through FINRA arbitration or other legal claims.
Did you experience losses because of investing in SHADOWGLEN DST as a result of your securities broker or financial advisor? If so, contact Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about recovering your losses. Soreide Law Group represents investors nationwide, advancing all case costs and charging no attorney fees unless a recovery is obtained.
If you believe you were misled or recommended unsuitable investments, legal assistance may help you pursue compensation and hold the responsible parties accountable.
Ernesto Chavez (CRD: 4315877) faces a new pending claim on BrokerCheck over an investment made in 2018. The customer alleges $180,000 in damages, and no arbitrator has ruled on the claim.
William Tunink (CRD: 2738224) settled a customer claim for $299,000 on August 11, 2026, according to his BrokerCheck report. The customer alleged that he obtained loans from the customer, and that some of the money went into an investment.
Tony Barouti (CRD: 3031995) faces a pending $230,400 customer claim, according to his BrokerCheck report. He says the allegations in it are false. His report also lists SEC administrative and cease-and-desist proceedings from August 2025.
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