Delaware Statutory Trusts (DSTs)

Emerson Equity, Versity Investments & Crew Enterprises DST Sales Investigation

Recovering Investment Losses from DSTs Nationwide | Iorio Law PLLC

Did you invest in a Delaware Statutory Trust (DST) offered by Versity Investments or Crew Enterprises (formerly known as NB Private Capital or Nelson Brothers)? You are not alone, and you may have legal options.

Iorio Law PLLC is currently investigating the sale of high-risk, illiquid Delaware Statutory Trusts (DSTs) and other private placements sponsored by Crew Enterprises, LLC or Versity Investments, and its predecessor entity NB Private Capital. These investments, managed by principals Brian Nelson, Blake Wettengel, and Tanya Muro, were sold to retail investors by a network of broker-dealers, including Emerson Equity LLC, WealthForge Securities LLC, and MIT Associates LLC. Many investors who were promised safe, stable income are now facing reduced or suspended distributions, a lack of transparency, and the potential for significant financial losses.

This investigation focuses on the potential liability of the brokerage firms that recommended and sold these complex products without performing adequate due diligence or properly disclosing the substantial risks involved. If you invested in a DST sponsored by Crew Enterprises, Versity Investments, or NB Private Capital, you may have legal options to pursue rescission or damages from your broker-dealer. This page details the basis of our investigation and outlines the potential legal claims available to investors seeking to recover their losses through FINRA arbitration. Our firm is led by securities arbitration attorney August M. Iorio, who has recovered nearly $100 million for clients in over 700 cases.

Key Allegations at a Glance

• Suspended Distributions: In 2024, Crew Enterprises suspended monthly distributions for many of the DSTs that it managed, creating significant financial distress for investors.
• Sponsor Misconduct: The sponsors (Crew/Versity) and their principals face a $56 million lawsuit alleging fraud and the misappropriation of investor funds.Speculation exists whether investor capital was diverted from specific DSTs to Crew Enterprises, which was struggling financially. On July 17, 2025, Crew Enterprises was hit with a $47 million judgment for breaching its obligations to a lender.
• Broker-Dealer Liability: Brokerage firms like Emerson Equity had a duty to perform due diligence on these products and may be liable for recommending them without properly disclosing the risks.
• Path to Recovery: The most direct and viable path for investors to recover losses is often a FINRA arbitration claim against the brokerage firm that sold them the investment.

An Urgent Alert for Investors in Crew Enterprises and Versity Investments DSTs

The Growing Crisis for DST Investors

Investors across the country who placed their trust and capital into DSTs sponsored by Crew Enterprises or Versity Investments are facing a troubling reality. In 2024, Crew Enterprises suspended monthly distributions for many of the DSTs that it managed, including several student housing properties and two multifamily properties. This sudden halt in income, coupled with what investors describe as “limited transparency” and “vague responses” from the company, has created significant frustration and financial distress.

These are not isolated incidents. Investors across the country have filed FINRA arbitration claims against their brokerage firms for the sale of these DSTs, signaling widespread concern about the viability of these investments and the sales practices used to market them. If you are an investor facing these issues, it is critical to understand that you are not alone and that you may have legal recourse.

The Core Issue: Sponsor Misconduct vs. Broker-Dealer Liability

While Crew Enterprises, Versity Investments, and its principals are facing serious legal challenges, including a $56 million lawsuit alleging fraud and misappropriation of investor funds, the most direct path to financial recovery for an individual investor is not a lawsuit against the sponsor. Instead, it is a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm that sold you the investment.

Broker-dealers, such as Emerson Equity and Great Point Capital LLC, are regulated by FINRA and have a fundamental, legally mandated duty to act as gatekeepers. They are required to perform rigorous due diligence on any investment product before recommending it and must ensure that the investment is suitable for that client’s specific financial situation and risk tolerance.

When a sponsor like Crew Enterprises or Versity Investment implodes amid allegations of fraud, the critical question becomes: Did the broker-dealer fulfill its supervisory duty? Did it ignore glaring red flags? The evidence suggests that in many cases, these gatekeepers may have failed in their duty, placing their own commission-based interests ahead of their clients’ financial well-being. This failure is the lynchpin of a powerful legal claim.

A Tangled Web: The History of Crew Enterprises, Versity, and the Nelson Brothers

To understand the risks that a competent broker-dealer should have identified, it is essential to unravel the complex and troubled history of the companies and individuals behind these DSTs.

A Pattern of Rebranding

Many of the DSTs in question were sponsored by firms managed by Brian Nelson, Blake Wettengel, and Tanya Muro. These individuals were associated with:

• Nelson Brothers Professional Real Estate,
• NB Private Capital,
• Versity Investments, and
• Crew Enterprises.

Though these entities changed names, management remained largely the same, raising questions about transparency and continuity. This pattern of rebranding is a significant red flag, as it can be a tactic to distance a firm from prior complaints, regulatory scrutiny, or a poor performance history.

The Shadow of Skyloft: The Patrick Nelson Connection

The history of the principals is further complicated by the activities of Brian Nelson’s brother, Patrick Nelson. While not formally part of Crew Enterprises, his own real estate empire, Nelson Partners, has faced a catastrophic collapse that serves as a stark warning. Investors in the Skyloft Austin DST accused Patrick Nelson of operating a “Ponzi-like scheme,” defrauding them of tens of millions of dollars. A diligent broker-dealer should have recognized that the principals of Versity/Crew were inextricably linked to this legacy of investor harm. The failure to do so represents a profound breakdown in their due diligence obligations.

The Promise vs. The Reality: Deconstructing the DST Investment

The DSTs sponsored by Crew and its predecessors were often marketed to conservative investors, particularly those executing a 1031 exchange to defer capital gains.

The “Perfect” 1031 Exchange Solution

Brokers presented these DSTs as a perfect solution for investors seeking a passive, reliable income stream. The marketing materials emphasized benefits like tax deferral, passive income, and diversification. Investors were led to believe they were purchasing a secure, professionally vetted real estate investment.

The Flawed Business Model

The reality was far different. The business model appears to have been engineered to benefit the sponsor and broker-dealer at the expense of the investor.

• Massive Property Markups: A core allegation is that sponsors acquired properties and immediately marked up the price (possibly by 30% or more) before syndicating them to investors.
• High and Layered Commissions: On top of the inflated value, broker-dealers allegedly were paid a 10% commission.
• Extreme Illiquidity: These DSTs are private placements with no public secondary market, leaving investors trapped.

The financial structure of this model could make the promised returns mathematically impossible. For an investor’s $100,000 to simply break even, the underlying real estate might need to appreciate by more than 66%. The eventual suspension of distributions may have been a predictable consequence of this structure.

A Pattern of Misconduct: Investigating Crew Enterprises and Emerson Equity

The mounting problems with Crew/Versity DSTs do not exist in a vacuum. They are part of a broader pattern of alleged misconduct by the sponsor and documented supervisory failures by the primary broker-dealer, Emerson Equity.

Part A: The Sponsor’s Alleged Misconduct (Crew/Versity)

The sponsor is facing multiple, serious allegations that call its integrity and financial viability into question.

• The $56 Million Lawsuit: In December 2024, a lawsuit was filed against Crew Enterprises and its principals by plaintiffs KHCA Funding LLC and Knights Hill Ireland II DAC. The suit alleges the defendants misappropriated more than $56 million in investor proceeds, asserting claims of breach of contract, fraud, conversion, and civil conspiracy. Several DSTs were named as defendants, including Hayworth Tanglewood DST and One on 4th DST.
• Suspended Distributions and the UPREIT Proposal: In early 2025, Crew suspended monthly distributions for at least six DSTs. To address the issue, Crew proposed converting the distressed DSTs into a 721 UPREIT (Umbrella Partnership Real Estate Investment Trust). This move can be risky, forcing investors to trade their interest in a specific property for shares in a larger, sponsor-controlled REIT with different risk profiles and continued illiquidity.
• Undisclosed Liens and Poor Communication: Investors have reported a severe lack of communication from Crew’s management and have discovered through their own research that numerous liens have been filed against the properties underlying their investments. The failure to disclose the existence of these liens—which materially impair the security and value of the investment—is a serious omission and a breach of the sponsor’s ongoing duties to its investors.

Part B: The Broker-Dealer’s Failures

The focus for investor recovery rests on the failures of the regulated broker-dealers who served as gatekeepers.

• The Gatekeeper’s Duty: Under FINRA Rule 3110 and the SEC’s Regulation Best Interest (Reg BI), broker-dealers must supervise their representatives and act in their clients’ best interests. This includes conducting adequate due diligence on the private placements they sell and supervising the representatives who sell them.
• Regulation Best Interest (Reg BI), effective since June 2020, mandates that brokers act in the best interest of their retail customers, placing the client’s interests ahead of their own financial incentives (like high commissions).  
• A Precedent of Negligence: Emerson Equity was the managing broker-dealer for Versity Investment s prior to June 15, 2022. The California-based broker-dealer was also the lead managing broker-dealer for GWG Holdings, which sold $1.6 billion in speculative L-Bonds before collapsing into bankruptcy in 2022. This involved the sale of similarly high-commission, illiquid investments to conservative investors. Emerson has since paid over $6 million in legal fees and settlements related to its sale of GWG L-Bonds.
• Other FINRA Sanctions: Emerson Equity’s supervisory issues extend beyond GWG. In December 2021, FINRA sanctioned the firm and its CEO, Dominic Baldini, penalizing them $1.7 million for years of poor supervision of short-term mutual fund trades that resulted in customers paying over $1.6 million in unnecessary fees. This history suggests Emerson’s alleged failure to properly vet the Versity DSTs was part of a systemic pattern.

Broker-Dealers That Sold DSTs

A range of broker-dealers sold these DSTs to retail investors. The managing broker-dealers changed over time:

• Emerson Equity LLC (before June 15, 2022, and possibly after early-July 2025 for Versity Investments)
• WealthForge Securities LLC (June 16, 2022 – August 19, 2024)
• MIT Associates LLC (after August 20, 2024)

. Other broker-dealers that sold these products include:

• Capulent LLC
• Great Point Capital LLC
• Port Securities, Inc.
• McNally Financial Services Corporation
• Lightpath Capital, Inc.
• Courtlandt Securities Corporation
• Innovation Partners, LLC
• Wilson-Davis & Co., Inc.
• Legacy Wealth Management LLC
• MSC – BD, LLC
• Willow Cove Investment Group, Inc.
• Cabin Securities, Inc.
• Copley Financial Group, Inc.
• Coastal Equites, Inc. (now Realta Equities, Inc.)
• Clark Wealth Stategies, Inc.
• Stonecrest Capital Markets, Inc.
• Cabin Securities, Inc.
• Link Alts Capital, LLC (now American Alternative Capital, LLC)
• Aurora Securities
• Westpark Capital, Inc.
• IBN Financial Services, Inc.
• Safe Harbor Asset Management, Inc. (now Safe Harbor Assets)
• Somerset Securities, Inc.
• Oakwood Advisory Group, LLC

DSTs Under Investigation

We are investigating sales practices associated with dozens of DSTs tied to Nelson-related entities.

Recent communications indicate that Brian Nelson and Versity Investments have taken over management of  the following projects:

• The Element, DST
• Campus Walk, DST
• Inspire on 22^nd, DST
• Wolf Run, DST
• Astoria, DST
• 4^th & J, DST
• Rockland, DST
• Oakbrook, DST
• Tuscany / Milano Flats, DST
• Beckingham, DST
• Tailor Lofts, DST
• CP Cincy, DST
• Flats at Shadowglen, DST
• The Nine, DST
• 345 Flats, DST
• Timberline on the Green
• NB Student Housing & Assisted Living Fund 1, LLC
• NB Student Housing Fund 2, LLC
• Student Housing Fund 3, LLC
• Versity Income Fund 1, LLC

According to the same communication, Blake Wettengel, Tanya Muro, and Crew Enterprises continue to manage the following projects:

• Vintage, DST
• The Walk, DST
• Hayworth Tanglewood, DST
• One on 4^th, DST
• Apex, DST
• Versity Income Fund II, LLC
• The Ridge TIC
• AW Provo Evolution, LLC
• University Park Berkeley, LLC

Other DSTs under investigation include:

• Versity Clemson Income Notes
• Student Housing Property JV, LLC
• Greeley Flats DST
• NB Stadium View DST
• NB Gathering DST
• NB Mountain Valley DST
• NP Skyloft DST
• NB Loft Vue DST
• Southern Star Storage Montrose II DST
• Montego Minerals Edgewood Royalties DST

These investments were often pitched with promises of monthly income and capital preservation, but many are now underperforming, suspended, or subject to lawsuits.

Recovering Your DST Losses Through FINRA Arbitration

FINRA arbitration is the primary method for recovering DST investment losses. At Iorio Law PLLC, we file FINRA arbitration claims on your behalf on a contingency-fee basis. You generally have up to six years from the date of purchase to file a claim. Don’t delay—your window for recovery may be closing.

Why Choose Iorio Law PLLC?

• Investor-Only Advocacy: We only represent investors—not brokerage firms
• Track Record: Nearly $100 million recovered for harmed investors
• Proven Experience: Over 700 cases handled nationwide
• Transparent Fees: No upfront legal fees; we only get paid if you do

Contact Us for a Free, Confidential Consultation

If you invested in a DST sponsored by Versity Investments, Crew Enterprises, NB Private Capital, or the Nelson Brothers and suffered losses, contact us today. You may be entitled to recover your losses through FINRA arbitration.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
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Iorio Law PLLC – Recovering Investor Losses Nationwide