Private Placement Fraud Lawsuit 

Our Broker Fraud Attorneys Are Representing This Claimant in Her Private Placement Fraud Lawsuit 

Retiree Sues Calton & Associates Over Losses in Nelson Partners Skyloft Austin DST 

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate investor losses in the Nelson Partners Skyloft, a Delaware Statutory Trust (DST)/ real estate private placement, which was allegedly run in Ponzi-like fashion. Recently, we filed a Financial Industry Regulatory Authority (FINRA) arbitration claim on behalf of a California retiree who is now seeking up to $500K in damages from brokerage firm Calton & Associates.

In her FINRA lawsuit, the claimant contends that Calton & Associates failed to warn her about the risks involved in Skyloft, a “luxury” student dorm for the University of Texas at Austin. This private placement investment was issued by Nelson Partners, which is a questionable entity that is now believed to have pocketed the proceeds from the money it raised, including using the funds for purposes not authorized or agreed upon by investors. Skyloft has since gone into foreclosure. Now, investors will only get back part of their investment from Nelson Partners and even that is not a total guarantee.

It is believed that Skyloft Austin DST investors, many of them retirees who invested six-figures, may have sustained at least $74M in losses. Many are claiming they were the victims of a Ponzi scam.

Skyloft was recommended to this senior investor on the basis of a supposed tax benefit. However, there were a lot of risks involved and it was inappropriate for Calton & Associates to market this private placement allegedly unsuitably to someone who didn’t want to take on any undue risk.

Not only that, but the broker-dealer purportedly concentrated this claimant’s account while claiming that Skyloft Austin was a safe investment that would produce a stable cash flow and diversify her portfolio to minimize the risks. It doesn’t help that this was an illiquid investment generally viewed as a start-up, which can carry significant upfront costs that may eat into the principal of an investment immediately.

This investor’s main priority was to supplement her retirement income. Instead, she has sustained significant losses.

How Can Our DST Loss Lawyers Help You With Your Nelson Partners Skyloft Austin Losses         

Private placements, including Delaware Statutory Trusts, can be high-risk investments that are generally unsuitable for many retail investors and conservative retirees. If you suspect that your broker-dealer engaged in financial advisor fraud and negligence when marketing and selling you Nelson Partners Skyloft DST, you may be able to sue them for damages.

Brokerage firms are supposed to conduct the proper due diligence into any investment they recommend. They also must ensure that it is appropriate for an investor, including making sure it is in line with their investment goals and risk tolerance level.

Shepherd Smith Edwards and Kantas can help you assess whether you have grounds for a broker misconduct claim related to your Skyloft DST losses. We have represented clients in over 1000 matters, including losses related to all kinds of real estate investments, private placements, and alternative investments. More than 90% of our clients have received full or partial financial recovery through our experience, skills, and dedication.

Contact our Seasoned Nelson Partners Skyloft Austin DST Loss Attorneys 

Call (800) 259-9010 or contact us online.