Securities Investigation: Livingston Street Capital LSC-AM MC2 DST
Are you concerned about your investment in Livingston Street Capital LSC-AM MC2 DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Livingston Street Capital, LLC reportedly sources, sponsors, and distributes real estate investment opportunities through the retail broker dealer channel, according to its website. The company’s investment programs reportedly focus on real estate utilized to provide necessity-based services and strategic-use properties.
According to SEC filings, the company filed a Form D to raise capital from investors in 2018 for the offering Livingston Street Capital LSC-AM MC2 DST. The entity type was a Business Trust and the total offering amount was purportedly $9,915,000.
Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.
While there is a time and place for most investments, DSTs are not appropriate for many investors as they come with a few disadvantages. For example, 1031 DSTs cannot raise new capital once the investment is made leaving investors holding the bag if expensive repairs are needed or other issues arise – like a drop in occupancy or rental income. The investors also have limited control over the property. While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor.
Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer if an investor wants to sell their interest before the property is sold.
Investigating Potential Lawsuits
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors.
Despite the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
If you are concerned about your investment in Livingston Street Capital LSC-AM MC2 DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.