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

For over three and a half years, Iorio Law PLLC has represented numerous GWG L Bond investors nationwide, recovering more than $3.5 million through FINRA arbitration against multiple brokerage firms. With the GWG bankruptcy leaving investors with mere pennies on the dollar—as little as $26.94 per $1,000 invested—these SEC settlements underscore the urgency for harmed investors to explore additional recovery through securities arbitration.

For more information, please visit our GWG L Bond Investor Recovery Center.

The SEC’s Findings Against Emerson Equity, LLC

According to the SEC’s settled order (SEC Release No. 34-103674), Emerson Equity, as GWG’s managing broker-dealer, played a central role in distributing nearly $2 billion in L Bonds to retail investors across the country. The SEC found that:

• Violated Reg BI’s Care Obligation: Emerson Equity willfully violated the customer-specific prong of Regulation Best Interest’s Care Obligation for selling GWG L Bonds to investors who had very little investment experience.
• Supervisory Failures: Emerson Equity approved the sale of GWG L Bonds, ignoring red flags, including that Tony Barouti was inputting the same information on investor suitability forms for each client regardless of their individual situations.
• Violated Reg BI’s Compliance Obligation: Emerson Equity willfully violated Regulation Best Interest’s Compliance Obligation by failing to adopt and implement written policies and procedures to comply with Regulation Best Interest. For example, Emerson Equity’s written policies and procedures relating to the Care Obligation did not provide any guidance for how to evaluate retail customers’ investment profiles.

As part of the settlement, Emerson agreed to a cease-and-desist order, a censure, and to pay civil penalties and disgorgement totaling millions of dollars.

In addition to these findings, Iorio Law PLLC is investigating Emerson Equity’s sales and supervisory practices and whether the brokerage firm breached its duties. The conduct in question, includes:

• Inadequate Due Diligence: Whether Emerson Equity failed to conduct reasonable due diligence into GWG and the L Bond offering, particularly after GWG materially changed its business model in 2018 by shifting from life settlements to alternative asset investments with The Beneficient Company Group.
• Misleading Sales Practices: Whether Emerson Equity allowed L Bond sales to continue despite red flags—including SEC investigations, multiple auditor resignations, and missed SEC filings—that signaled serious liquidity and solvency risks.
• Conflicts of Interest and Incentives: Whether Emerson Equity and its associated brokers prioritized commissions as high as 8% on L Bond sales over their customers’ best interests.
• Supervisory Failures: Whether Emerson Equity did not reasonably supervise its network of selling brokers to ensure compliance with suitability and Regulation Best Interest (Reg BI) obligations.

The SEC’s Findings Against Tony Barouti

In a separate settled order (SEC Release No. 34-103675), the SEC sanctioned Tony Barouti, a Los Angeles-based registered representative who was one of the top sellers of GWG L Bonds.

The SEC found that Barouti:

• Violated Reg BI’s Care Obligation: Willfully violated the customer-specific prong of Regulation Best Interest’s Care Obligation for selling GWG L Bonds to investors who had very little investment experience.
• Submitted Inaccurate Forms: Had a practice of completing inaccurate Investor Suitability Questionnaire forms for his clients, many of whom were at or near retirement age. The SEC found that the Investor Suitability Questionnaires for a sample of 10 customers each stated that the customer had “Extensive (10+ years)” of investment experience in all listed asset classes, including but not limited to “Options/Derivatives,” “Venture Capital,” and “Commodities.” These forms did not accurately represent the actual investment experience of these customers. At least four of the customers had very little investment experience and did not know what products constituted options, derivatives, or venture capital.

Barouti agreed to be barred from the securities industry for a period of time and to pay a combination of disgorgement, prejudgment interest, and civil penalties.

In addition to these findings, Iorio Law PLLC is investigating Tony Barouti’s sales practices. Based on conversations with dozens of Mr. Barouti’s clients, the law firm’s investigation has found that Barouti:

• Sold L Bonds Without a Reasonable Basis: Recommended GWG L Bonds to retail customers without conducting adequate due diligence into the product’s risks, liquidity constraints, and changes in GWG’s business model.
• Failed to Disclose Material Risks: Did not fully and fairly disclose the speculative nature of the bonds, the lack of direct collateralization by life insurance policies, and GWG’s deteriorating financial condition.
• Ignored Suitability Concerns: Sold L Bonds to investors—including seniors and retirees—whose investment objectives, risk tolerance, and liquidity needs were incompatible with the product.

How This Confirms What We’ve Been Saying for Years

Our GWG L Bond Investor Recovery Center has long documented how brokerage firms—including Emerson Equity—ignored glaring red flags when selling these high-risk, illiquid bonds:

• Business Model Shift: In 2018, GWG transformed into a risky alternative asset company by merging with and ceding control to The Beneficient Company Group. Many investors were never told this.
• Financial Distress: SEC filings from 2019 onward showed delayed reporting, accounting issues, and auditor resignations—warning signs any competent due diligence review would have caught.
• Ponzi-Like Use of Proceeds: GWG used investor capital to pay interest and redeem earlier bonds, masking liquidity problems.
• Default and Bankruptcy: GWG defaulted on its L Bond obligations in January 2022 and filed for Chapter 11 bankruptcy three months later.

The SEC’s findings against Emerson Equity and Barouti align directly with our own investigation and what our clients have experienced: unsuitable recommendations, material misrepresentations, and failures to supervise.

Why FINRA Arbitration Is Still the Best Path for Recovery

While the SEC’s settlements are important, they do not compensate all individual investors for their losses. Regulatory fines are paid to the government, not to the harmed customers. That’s why FINRA arbitration claims remain the most effective route to recover GWG L Bond losses.

Key points for investors:

• Separate from Bankruptcy: Arbitration claims target the brokerage firm that recommended and sold the L Bonds—not GWG Holdings itself—so they are not affected by the bankruptcy discharge.
• Strong Precedent: Iorio Law PLLC has already recovered over $3.5 million for GWG investors in arbitration claims against more than 25 different broker-dealers.
• High Win Rates: According to FINRA statistics, GWG L Bond cases have produced monetary awards in 85% of cases that went to a final hearing—nearly three times the average investor win rate.
• Time Limits Apply: FINRA claims generally must be filed within six years of the investment, and in some cases sooner.

Brokerage Firms That Sold GWG L Bonds

While Emerson Equity was the managing broker-dealer, it relied on a nationwide selling network, including:

• Centaurus Financial, Inc.
• Western International Securities, Inc.
• Aegis Capital Corp.
• Arete Wealth Management, LLC
• Lifemark Securities Corp.
• Moloney Securities Co., Inc.
• Newbridge Securities Corporation
• Coastal Equities, Inc. (now Realta Equities, Inc.)
• Cabot Lodge Securities LLC
• And many others

If your brokerage firm is on this list—or even if it is not—you may have a valid claim.

What Investors Should Do Now

If you purchased GWG L Bonds through Emerson Equity, Tony Barouti, or any other broker:

1. Gather Documentation: Collect account statements, trade confirmations, offering documents, and any written communications with your broker.
2. Act Quickly: The longer you wait, the greater the risk that your claim may be barred by time limits.
3. Get a Free Case Review: At Iorio Law PLLC, we offer free, confidential consultations and work on a contingency fee basis—no recovery, no fee.

About Iorio Law PLLC’s GWG L Bond Representation

• Experience: Representing GWG investors nationwide since 2022.
• Proven Results: Over $3.5 million recovered for GWG investors through FINRA arbitration.
• Customer Satisfaction: ★★★★★ “August represented my associate and me in the GWG arbitration and accomplished what we thought was impossible. He successfully tracked down the elusive owner of a firm—who had sold the company shortly after our issue arose—and secured a fair settlement for us. Another law firm had already told me the case would be a ‘waste of their time,’ but Attorney Iorio took it on and was a bulldog.” – Allan F.
• Leadership: Founder August M. Iorio is a Director on the Board of the Public Investors Advocate Bar Association (PIABA) and has handled more than 700 securities arbitration cases.
• Nationwide Reach: Based in New York City, representing clients in all 50 states.

Take Action

The SEC’s settlements with Emerson Equity and Tony Barouti confirm a disturbing truth: many GWG L Bond sales violated core investor protection rules. But investors will not receive compensation from these regulatory actions. To recover your losses, you must take action.

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

Your fight is our fight. We are committed to holding negligent brokers accountable and helping you reclaim your financial future.