If you invested in this property, you were likely sold on the promise of a “stable,” “income-producing,” and “tax-advantaged” replacement property. However, recent data reveals a different reality.

Iorio Law PLLC is actively investigating One on 4th DST as part of our broader investigation into Versity/Crew Enterprises DSTs. Investor outcomes depend heavily on truthful disclosures and broker-dealer due diligence. When those fail, investors have the right to seek financial recovery.

What’s New: Q4 2025 Results Show Meaningful Losses

The Sponsor’s Q4 2025 investor update paints a concerning picture of the property’s financial health. For the fourth quarter of 2025:

• One on 4th LeaseCo, LLC reported a net loss of ($292,008).
• The Trust reported a net loss of ($1,673,262).

These losses are significant. DST investors typically rely on the Trust’s net cash flow (or reserve usage) for regular distributions and principal preservation. When a Trust runs deep quarterly losses, investors face heightened risks of continued distribution suspensions, further asset deterioration, and potential forced restructuring.

“Strong Occupancy” Does Not Guarantee Investor Safety

The Q4 2025 update notes that the property ended the quarter at 98.9% occupancy and describes the asset as “stabilized.” However, the update also acknowledges that operating performance remains heavily pressured by elevated costs—particularly property taxes, insurance, and utilities—which remain consistently above initial underwriting assumptions.

The bottom line: High occupancy does not equal sustainable distributable cash flow. For DST investors, success requires sufficient cash flow after debt service, taxes, insurance, property management costs, and other hidden charges.

Why the DST Structure Matters: Master Leases and the Fee Stack

One on 4th DST utilizes a master lease structure. The Trust leases the property to an affiliate (One on 4th LeaseCo, LLC), and another affiliate entity serves as the property manager. Affiliate-driven structures can create inherent conflicts of interest and severely reduce transparency, leaving investors dependent on sponsor-controlled reporting across multiple related entities.

Furthermore, this offering carried a massive upfront selling-cost and fee structure. The Private Placement Memorandum (PPM) notes that WealthForge Securities, LLC served as the exclusive managing broker-dealer. Selling commissions and expenses were capped at a staggering 9.33% (including selling commissions, dealer management fees, broker-dealer allowances, wholesaling fees, and offering expenses).

High-commission alternative investments often create dangerous incentives for:

• Aggressive sales practices.
• Incomplete discussions regarding risk and liquidity.
• “Rubber-stamp” due diligence by broker-dealers who ignore sponsor red flags.

Broker-Dealer Liability: Investigating One on 4th DST Sales

Over the past several years, One on 4th DST and other Versity/Crew-sponsored investments have reportedly experienced loan defaults, declining occupancy, significant accounts payable, suspended distributions, and a distinct lack of investor communication.

When transparency disappears, we ask the critical questions: Where did the offering proceeds actually go? Were reserve accounts properly maintained? Were related-party payments fully disclosed?

The Crux of the Claims: A Missed 2020 Fraud Lawsuit

At the heart of the claims against the selling broker-dealers is a glaring failure of due diligence, disclosure, and supervision.

Specifically, our investigation focuses on the failure of brokerage firms to detect and disclose that the principals of Versity/Crew, Blake Wettengel and Tanya Muro, were named as defendants in a lawsuit filed in November 2020. This lawsuit contained severe allegations that the principals defrauded investors by misappropriating syndicated funds for their own personal benefit.

For a broker-dealer, uncovering a prior fraud and misappropriation lawsuit against a sponsor’s principals is “Due Diligence 101.” Recommending a high-risk, illiquid DST like One on 4th without disclosing this massive red flag to retail investors represents a severe potential breach of regulatory obligations.

Reg BI, Suitability, and Failure to Supervise

Through FINRA arbitration, One on 4th DST investors may have strong claims against the brokerage firms that sold them these investments. Potential claims include:

• Failure to conduct reasonable due diligence into sponsor controls, related-party transactions, and prior litigation involving the sponsor’s principals.
• Misrepresentations and omissions regarding the safety, distribution risks, and the true track record of the sponsor.
• Regulation Best Interest (Reg BI) and Suitability violations, including over-concentrating investor portfolios in highly illiquid alternative investments.
• Failure to supervise brokers who aggressively marketed DSTs as “safe” or “stable” while downplaying or entirely omitting known structural risks and legal red flags.

“Bridge Equity” and Structural Risks

Additionally, the PPM describes the use of “bridge equity” to close the acquisition before sufficient DST interests were actually sold. It contains warnings that, in certain default scenarios, proceeds from the sale of DST interests could be demanded to satisfy obligations not directly tied to the property. Many retail investors were never meaningfully warned about this proceeds-flow risk.

Practical Next Steps for One on 4th DST Investors

If you invested in One on 4th DST and are currently dealing with suspended distributions or limited communications, it is time to protect your legal rights.

1. Gather Your Documents: Locate your subscription paperwork, the PPM, investor reports, email correspondence with your advisor, and account statements.
2. Identify the Seller: Note the specific advisor who recommended the investment and the broker-dealer firm they were registered with at the time of the sale.
3. Evaluate FINRA Arbitration Options: In many DST fraud and negligence cases, financial recovery is pursued directly against the selling broker-dealer. Brokerage firms carry meaningful insurance and represent a collectible source of recovery.

Contact Iorio Law PLLC Today

Iorio Law PLLC is actively investigating financial losses connected to Versity/Crew-sponsored DSTs, including One on 4th DST. If you are concerned about your suspended distributions, the lack of transparency, or the safety of your principal investment, we can evaluate whether a FINRA arbitration claim is appropriate for you.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: New York, NY | Representing DST Investors Nationwide
🖊️ Free Case Review: Contact Form

If you invested in a Delaware Statutory Trust (DST) and recently learned that the sponsor or property entity has filed for bankruptcy, you are not alone. Over the past several years, numerous real estate DST programs have collapsed due to rising interest rates, operational failures, refinancing defaults, sponsor mismanagement, and fraud.

As investors in Delaware Statutory Trusts (DSTs), many of you turn to these vehicles for their tax advantages, such as 1031 exchanges, and potential steady income from real estate holdings like senior living facilities. But what happens when your DST sponsor, like Inspired Healthcare Capital Holdings, LLC, files for Chapter 11 bankruptcy?

The bankruptcy filing can feel overwhelming—but it does not mean your legal options are over. In many cases, bankruptcy is only the beginning of the recovery process.

Here’s what every DST investor needs to know.

What Does Bankruptcy Mean for DST Investors?

When a DST files for Chapter 11, it aims to reorganize debts while continuing operations. However, this can significantly impact investors:

• Automatic Stay: The bankruptcy halts collections, foreclosures, or lawsuits against the debtor, protecting assets but potentially delaying distributions to investors.
• Creditor Status: As a beneficial owner in the DST, you may be treated as an unsecured creditor, meaning recoveries depend on the reorganization plan. Funds available for distribution could be limited after administrative expenses and secured debts are paid.
• Potential Outcomes:
  • Reorganization: The DST might emerge stronger, but with diluted investor interests.
  • Liquidation: Assets like senior living properties could be sold, leading to partial recoveries.
  • No Recovery: In worst-case scenarios, unsecured creditors receive nothing.

This does not automatically eliminate investor rights. Instead, bankruptcy often confirms what many investors already suspected:

• The investment failed to perform as promised
• Distributions stopped or were artificially supported
• Refinancing assumptions were unrealistic
• Risk disclosures were downplayed or misrepresented

Most importantly, the bankruptcy filing frequently triggers investigation into how the DST was sold in the first place.

Your Options: Beyond Waiting on Bankruptcy Court

Many investors assume they must wait in bankruptcy court. That is often a mistake.

Bankruptcy Recovery (Sponsor Side)

Participating in the bankruptcy as a creditor is one route—file a proof of claim, attend hearings, or join a creditors’ committee. Bankruptcy cases typically involve:

• Senior lenders
• Secured creditors
• Trade vendors
• Internal restructuring

DST investors often receive little to no recovery because they sit at the bottom of the capital stack.

A more proactive option? Holding your broker or financial advisor accountable through FINRA arbitration.

FINRA Arbitration (Broker Liability)

Brokers and advisors have a duty to recommend suitable investments, conduct due diligence, and disclose risks. In DST cases like those from Inspired Healthcare Capital, common issues include:

• Unsuitability: Recommending high-risk DSTs to conservative investors seeking stable income or tax deferral.
• Misrepresentations: Downplaying risks such as illiquidity, market volatility in senior living, or sponsor financial instability.
• Omissions: Failing to disclose material information, such as sponsor risk or prior sponsor misconduct.   
• Failure to Disclose Conflicts: Not revealing conflicts of interest, like commissions from selling DST interests, or inadequate vetting of the sponsor.
• Breach of Fiduciary Duty: Advisors must act in your best interest; failing to monitor the investment post-purchase could be grounds for a claim.

FINRA arbitration is a streamlined, cost-effective alternative to court, often resolving in 12-18 months. Successful claims can recover principal losses, lost income, legal fees, and punitive damages. Unlike bankruptcy, arbitration targets the brokerage firm, which may have deeper pockets.

Your claim is against the brokerage firm and financial advisor, not the bankrupt sponsor.

This is where meaningful recoveries frequently occur.

You can, and often should, pursue both avenues of recovery.

Key Steps to File a FINRA Claim

1. Gather Documentation: Subscription agreements, closing statements, investor updates, account statements, and communications with your advisor.
2. Assess Statute of Limitations: FINRA claims generally must be filed within six years of the purchase or discovery of the issue.
3. Consult a Specialist: Work with a securities arbitration firm like Iorio Law PLLC to evaluate your case. We’re currently reviewing Inspired Healthcare Capital DSTs and Versity Investments, LLC / Crew Enterprises, LLC-sponsored DSTs for potential claims.
4. File the Statement of Claim: Detail the misconduct and damages sought.

In recent similar cases, investors have recovered millions from brokers for unsuitable real estate securities. With Inspired’s bankruptcy fresh, now is the time to act before evidence fades or limitations expire.

Timing Matters: FINRA Eligibility Deadlines

FINRA imposes strict filing deadlines:

• Generally six years from the date of purchase
• Shorter deadlines may apply depending on state law claims

If your DST was purchased in 2019–2021, your eligibility window may already be closing.

Waiting for bankruptcy resolution can permanently destroy your right to recover from the brokerage firm.

Case Study: Inspired Healthcare Capital’s Filings Highlight Risks

Investors should be aware that Inspired Healthcare Capital (IHC) and its affiliates have officially filed for Chapter 11 bankruptcy protection in the Northern District of Texas. This legal action covers not only IHC but also its affiliated Delaware Statutory Trusts (DSTs) and private placement funds. The filings confirm serious financial woes: distributions have been suspended, capital raises halted, and concerns regarding solvency and transparency are mounting. If your portfolio includes these assets, your capital is at heightened risk. The following IHC entities have filed for protection:

• Inspired Senior Living of Appleton DST
• Inspired Senior Living of Arlington Heights DST
• IHC Ashbrook DST
• Inspired Senior Living of Athens DST
• Inspired Senior Living of Augusta DST
• Inspired Senior Living of Brookhaven DST
• Inspired Senior Living of Carson Valley DST
• IHC – Candle Light Cove DST
• Inspired Senior Living of Chesterfield DST
• Inspired Senior Living of Dartmouth DST
• Inspired Senior Living of Delray Beach DST
• Inspired Senior Living of Dunedin DST
• Inspired Senior Living of Eatonton DST
• Inspired Senior Living of Eugene DST
• Inspired Senior Living of Fort Myers DST
• Inspired Senior Living of Grapevine DST
• Inspired Senior Living of Hamilton DST
• Inspired Senior Living of Lake Orion DST
• Inspired Senior Living of Largo DST
• Inspired Senior Living of Las Vegas DST
• Inspired Senior Living of Melbourne DST
• Inspired Senior Living of Mequon DST
• Inspired Senior Living of Naperville DST
• Inspired Senior Living of New Braunfels DST
• Inspired Senior Living of North Haven DST
• IHC – Peachtree DST
• Inspired Senior Living of Pinellas Park DST
• Inspired Senior Living of Reno DST
• Inspired Senior Living of Round Rock DST
• Inspired Senior Living of San Marcos DST
• Inspired Senior Living of St. Petersburg DST
• Inspired Healthcare Capital Income Fund LLC
• Inspired Healthcare Capital Income Fund 2 LLC
• Inspired Healthcare Capital Income Fund 3 LLC
• Inspired Healthcare Capital Income Fund 5, LLC
• Inspired Healthcare Capital Income Fund 5 Notes, LLC
• Inspired Healthcare Capital Liquidity Fund, LLC
• Inspired Healthcare Capital Fund LP
• IHC Security Income Fund LLC
• IHC Development Fund III, LLC
• IHC Development Fund IV, LLC

Iorio Law PLLC is investigating the sales practices and due diligence of Emerson Equity LLC; Berthel, Fisher & Company Financial Services, Inc.; Newbridge Securities Corporation; Landolt Securities, Inc.; Dempsey Lord Smith LLC; and KCD Financial Inc. in recommending and selling these risky securities.

Case Study: Versity Investment and Crew Enterprise DSTs

Iorio Law PLLC is representing individuals who have approximately $25 million in beneficial interests in various DSTs sponsored by Versity Investments, LLC and/or Crew Enterprises, LLC (formerly Versity Invest, LLC), including:

• Hayworth Tanglewood, DST
• One on 4^th DST
• Apex South Creek, DST
• Vintage, DST
• The Walk, DST
• The Element, DST
• Wolf Run, DST
• 4^th & J, DST
• Oakbrook, DST
• Tailor Lofts, DST  
• Shadowglen, DST
• The Nine, DST
• Campus Walk, DST

In addition, we are representing investors who own other securities issued by Versity, including:

• Versity Income Property Notes
• Versity Income Fund I, LLC
• Versity Income Fund II, LLC
• The Ridge TIC
• AW Provo Evolution, LLC
• University Park Berkeley, LLC

Iorio Law PLLC is investigating whether broker-dealers such as Great Point Capital, LLC, Coastal Equities, Inc. (now Realta Equities, Inc.), Capulent LLC, Cabin Securities, Inc., Aurora Securities disclosed to investors that the principals of the Sponsor had previously been alleged to have defrauded investors by diverting and misappropriating syndicated funds from DSTs.  

You Are Not Alone

At Iorio Law PLLC, we represent DST investors nationwide whose financial assets and savings were placed into unsuitable real estate programs. We focus exclusively on investor recovery and securities arbitration.

If your DST has filed for bankruptcy and you are wondering what comes next, now is the time to act.

Protect Your Investment Today

Speak With a DST Arbitration Attorney

If you invested in a DST that is now in bankruptcy and want to explore your recovery options:

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: New York, NY | Representing DST Investors Nationwide
🖊️ Free Case Review: Contact Form

Recent developments—including loan defaults, suspended distributions, allegations of misappropriation of investor funds, and multiple Versity Investments lawsuits and Crew Enterprises lawsuits—raise significant concerns for investors and for the broker-dealers who recommended this offering.

If you invested in Apex South Creek DST, contact us for a free consultation.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

What Is Apex South Creek DST?

Apex South Creek DST is a Delaware Statutory Trust formed to acquire a newly built Class A multifamily apartment community located at 3060 Southcreek Blvd., Orlando, Florida.

The offering was created and managed by Versity Investments, LLC (formerly NB Private Capital) and affiliated entities now operating under Crew Enterprises, LLC.

Broker-dealers marketed Apex as a stable, income-producing 1031 investment. However, at the time of the offering, the principals of Versity Investments, LLC were already alleged to have diverted and misappropriated syndicated funds away from other DSTs. Further, recent developments demonstrate that the investment has become deeply distressed and may have been unsuitable for many investors.

Who Sold Apex South Creek DST?

Based on information obtained to date, and upon information and belief, Apex South Creek DST was sold to investors by:

• Brian Nelson of Emerson Equity, LLC
• Don Linzer of Coastal Equities, Inc. (now Realta Equities, Inc.) and Great Point Capital LLC

These firms and representatives are believed to have sold Apex South Creek to retail investors, including 1031-exchange clients who relied on their brokers’ recommendations and due diligence.

Broker-dealers earned substantial commissions—often 5% to 7%—for selling interests in Apex South Creek DST. Those commissions created strong incentives to push high-risk DST offerings regardless of suitability.

Emerson Equity served as the managing broker-dealer for many Versity-sponsored DSTs, meaning it played a central role in supervising the due-diligence process and coordinating sales through participating broker-dealers.

Coastal Equities (now Realta Equities) has been associated with multiple high-risk alternative investment sales, including other DSTs that later experienced distress.

Upon information and belief, Coastal Equities and Great Point Capital were some of the largest sellers of DSTs sponsored by Versity Investments.

Other Broker-Dealers That Sold Versity-Sponsored DSTs:

Multiple other broker-dealers have sold Versity Investments / Crew Enterprises-sponsored DST offerings, including:

• Purshe Kaplan Sterling Investments
• Lion Street Financial
• Stonecrest Capital Markets
• Westpark Capital, Inc.
• IBN Financial Services, Inc.
• Dempsey Lord Smith, LLC
• WealthForge Securities, LLC
• AAG Capital, Inc.
• Cape Securities, Inc.
• Aurora Securities, Inc.
• Capulent, LLC

These firms appear across various Versity-sponsored DSTs, such as The Walk, Vintage, Hayworth Tanglewood, One on 4^th, Nine, and others that are now experiencing distress, suspended distributions, or litigation.

The presence of such a wide network of selling broker-dealers underscores the industry-wide distribution of Versity-sponsored DSTs and the potential systemic due-diligence failures related to these offerings.

Distributions to Investors Have Been Suspended:

Multiple investors report that Apex South Creek DST distributions have been suspended, leaving investors without expected monthly income.

The suspension occurred despite the sponsor’s earlier “yield enhancement” marketing, which temporarily increased stated rent to investors using sponsor-funded payments—a red flag indicating that actual property cash flow was likely insufficient to support stated distributions.

Suspended distributions often correlate with impaired property operations and may significantly reduce investors’ ability to recover principal upon sale or refinance.

They are a major indicator of financial distress and are highly relevant to Reg BI and suitability analyses for broker-dealers that recommended the DST.

Apex South Creek Faces Severe Loan Defaults and Multimillion-Dollar Judgments:

Recent court filings show that Apex South Creek is in significant financial distress, including:

$47 Million Judgment Against Versity Invest

Lenders obtained a judgment of approximately $47 million against Versity Invest, LLC, the guarantor for the Apex South Creek financing.

Lender Lawsuit Against Project-Level Borrower

The lenders are also pursuing the project-level borrower, Apex South Creek IB, LLC, another Versity-controlled entity.

Key Allegations From Court Filings

According to sworn lender allegations:

• Original principal across the notes totaled $42 million.
• Maturity dates were extended three times (ultimately to May 18, 2024).
• No interest payments have been made since November 2023.
• Apex South Creek has allegedly been in default for months.
• Outstanding principal as of March 31, 2025 is $34,114,356.
• Total amounts due now exceed $42,953,401.

The lenders also allege that Versity misappropriated syndication proceeds, meaning investor-raised capital was allegedly diverted for improper uses—forcing the lenders to “involuntarily fund” part of the Apex South Creek transaction.

This allegation mirrors claims made in other Versity Investments lawsuits and Crew Enterprises lawsuits, strengthening concerns that the problems at Apex are not isolated.

Investors Sue Apex South Creek DST: Claims of Willful Misconduct and Fraud

Separately, Apex South Creek DST investors have filed litigation in the Delaware Court of Chancery:

Apex South Creek DST, et al., 2025-0990-SEM (Del. Ch.)

The investor petition seeks to remove the DST trustee, citing:

• Willful misconduct
• Fraud
• Gross negligence
• Breach of fiduciary duty

A DST trust-removal action is exceptionally rare and typically occurs only when investors believe the sponsor or trustee engaged in serious wrongdoing.

Serious Allegations Against Versity, Crew Enterprises, Blake Wettengel, and Tanya Muro:

Apex South Creek is not the only DST sponsored by Versity/Crew facing problems.

Multiple lawsuits—including the KHCA/Knights Hill, Nelson brothers, and other DST investor actions—allege that: Blake Wettengel and Tanya Muro through Versity Investments, Versity Invest, and Crew Enterprises diverted and misappropriated syndicated proceeds, “commingled funds,” paid themselves unapproved bonuses, and extracted excessive “partnership expenses.”

In several DSTs, these issues have allegedly contributed to:

• Suspended distributions
• Loan defaults
• Massive deficits in operating and reserve accounts
• Risk of foreclosure
• Investor capital impairment or loss

These allegations form the basis of several ongoing legal actions—making Apex South Creek part of a larger pattern of sponsor misconduct.

Why Broker-Dealers May Be Liable for Apex South Creek DST Losses:

Broker-dealers who recommended Apex South Creek DST may be liable for investor losses if they:

• Failed to conduct adequate due diligence on Versity Investments or Crew Enterprises
• Failed to detect and disclose material information about Versity, Crew, Wettengel, and Muro, including regarding past allegations of defrauding investors and misappropriating investors’ syndicated proceeds
• Ignored red flags about the sponsor’s financial condition
• Recommended an illiquid, high-risk DST to unsuitable investors
• Misrepresented stability, income expectations, or the true risks of the investment
• Violated Regulation Best Interest (Reg BI) or FINRA Rules 2111, 3110, and 2210

Due diligence failures are especially significant given the now-public allegations of:

• Diversion of investor funds
• Sponsor cash-flow manipulation
• Repeated problems across multiple Versity-sponsored DSTs
• Financial distress predating the suspension of distributions
• Severe governance failures and trustee misconduct claims

Given that allegations of misappropriation surfaced as early as 2020, a reasonable due-diligence inquiry would have identified material red flags requiring enhanced scrutiny

FINRA arbitration is often the most effective way for investors to recover losses against the broker-dealers involved.

What Apex South Creek Investors Should Do Now:

If you purchased Apex South Creek DST—or are researching the latest Versity Investments lawsuit update or Crew Enterprises lawsuit update—you may have strong legal claims.

You may be entitled to recover losses for:

• Unsuitable recommendations
• Misrepresentations and omissions
• Failure to conduct due diligence
• Reg BI violations
• Failure to supervise
• Breach of fiduciary duty

You do not need to sue the sponsor; your claims are typically against the broker-dealer in FINRA arbitration.

Iorio Law PLLC Represents Versity-Sponsored DST Investors Nationwide:

Iorio Law PLLC is a national securities arbitration firm representing investors in claims involving DSTs, private placements, alternative investments, and broker-dealer misconduct.

Our attorneys have recovered tens of millions of dollars for investors harmed by unsuitable investment recommendations involving high-risk, complex investment products.

If you invested in Apex South Creek DST or any other Versity-sponsored DST, contact us today to review your legal rights.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form