Haselkorn & Thibaut Investigates Potential Investor Claims Involving Concorde Investment Services and Valeo Groupe Americas DST Investments
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Haselkorn & Thibaut is reviewing potential investor claims involving Concorde Investment Services LLC and investments issued or sponsored by Valeo Groupe Americas, including Epoch Huntsville DST, a Delaware Statutory Trust investment marketed to 1031 exchange investors.
Epoch Huntsville DST was reportedly sponsored by Valeo Groupe Americas and involved student housing-related real estate. According to publicly available information, Valeo Groupe Americas raised capital through 1031 DST private placement offerings, including Epoch Huntsville DST, which reportedly filed a Form D in 2019 for a purported offering amount of approximately $23.7 million.
For some investors, the key question may not only be whether Epoch Huntsville DST was a suitable investment, but also whether material information regarding the individuals and entities behind the offering was fully and timely disclosed.
A Unique Potential Conflict: Ted Rollins’ Role at Both the Sponsor and Broker-Dealer Level
One of the unique issues under review involves Ted Rollins, a well-known figure in the student housing and real estate investment space.
Rollins was reportedly not only a key individual involved with the issuer or sponsor side of the Valeo Groupe Americas investment, but also the Chairman and owner of Concorde Holdings, which in turn owned Concorde Investment Services LLC, the broker-dealer that was recommending and marketing the investment.
That relationship may be significant because it is unusual for the owner of the broker-dealer marketing and recommending an investment to also be a key individual connected to the issuer or sponsor of the investment product itself.
For investors, that raises important questions:
- Was Rollins’ role and relationship to both Valeo Groupe Americas and Concorde Investment Services fully disclosed?
- Were investors told that the broker-dealer marketing the investment was connected through ownership and leadership to a key individual involved with the sponsor or issuer?
- Did financial advisors emphasize Rollins’ reputation, experience, or track record in student housing as part of the sales pitch?
- If so, were investors also informed of material developments affecting Rollins’ ability to remain involved with the business?
Why Ted Rollins’ Illness and Passing May Be Material to Investors
Ted Rollins reportedly founded Campus Crest and later Valeo. Campus Crest grew into a publicly traded student housing company with a substantial national and international footprint. Because of that background, Rollins’ involvement may have been an important factor for investors considering student housing-related DST offerings such as Epoch Huntsville DST.
According to reports, Rollins was diagnosed with cancer in late 2020 and passed away on August 15, 2021, after a 10-month battle with the disease. He was 58 years old.
If investors were encouraged to invest based on Rollins’ experience, leadership, reputation, or continued involvement, then his illness and later passing could be viewed as potentially material information. Investors may have reasonably wanted to know whether a key person behind the sponsor or issuer was seriously ill, unavailable, or no longer able to provide the leadership, oversight, relationships, or industry experience that had been highlighted during the sales process.
The issue is especially important where the same individual was reportedly connected both to the investment sponsor and to the broker-dealer recommending the product. In those circumstances, investors may have questions about whether disclosures were accurate, complete, and timely.
Possible Disclosure, Due Diligence, and Supervision Issues
Brokerage firms and financial advisors have obligations when recommending private placements, DSTs, and other complex alternative investments. These obligations may include conducting reasonable due diligence, understanding the product, evaluating risks, identifying conflicts of interest, and ensuring that recommendations are suitable or in the investor’s best interest.
Potential investor concerns involving Concorde Investment Services and Epoch Huntsville DST may include:
- Material omissions regarding Ted Rollins’ health, role, or ability to remain involved;
- Conflicts of interest arising from Rollins’ reported involvement at both the sponsor/issuer level and broker-dealer ownership level;
- Failure to conduct adequate due diligence before recommending the investment;
- Failure to update due diligence as new material information became known;
- Misrepresentations or incomplete disclosures regarding the investment, sponsor, management team, or risks;
- Unsuitable recommendations of illiquid DST investments to investors who needed liquidity, income stability, or lower-risk investments;
- Failure to supervise financial advisors who marketed and sold the investment.
These issues are fact-specific and depend on what was known, when it was known, what was disclosed, and how the investment was presented to each investor.
DST Investments Carry Significant Risks
Delaware Statutory Trusts are often marketed to investors completing 1031 exchanges. They may be promoted as a way to obtain passive real estate exposure, potential income, and tax deferral benefits without direct property management responsibilities.
However, DSTs are complex, illiquid, and risky investments. Risks may include:
- Lack of liquidity and limited or no secondary market;
- Potential suspension or reduction of distributions;
- Decline in property value;
- High fees and commissions;
- Sponsor or management-related risks;
- Financing and interest rate risks;
- Occupancy and operating risks;
- Tax-related risks if the investment does not perform as expected.
Because DSTs are typically private placement investments, investors often rely heavily on the broker-dealer and financial advisor recommending the product. That makes the advisor’s due diligence, disclosures, and suitability analysis especially important.
Why the Sales Pitch Matters
For many investors, the decision to purchase a private placement or DST investment is influenced by the people behind the offering. If a sales presentation emphasized Ted Rollins’ background in student housing, his role with Valeo, his prior success with Campus Crest, or his continuing involvement, investors may have relied on those representations when deciding whether to invest.
If those investors were not told that Rollins had been diagnosed with a serious illness, or if they were not informed in a timely manner that his ability to remain involved had changed, they may have potential claims based on material omissions, negligent due diligence, or failure to supervise.
This does not mean every investor has a claim. But it does mean investors should carefully review what they were told, what written materials they received, and whether important information was omitted.
What Investors Should Review
Investors who purchased Epoch Huntsville DST or other Valeo Groupe Americas investments through Concorde Investment Services may want to gather and review:
- Subscription documents;
- Private placement memoranda;
- Marketing materials;
- Emails and written communications with the advisor;
- Notes from sales meetings or calls;
- Account statements;
- Distribution notices;
- Any disclosures regarding Ted Rollins, Valeo Groupe Americas, Concorde Holdings, or Concorde Investment Services;
- Any communications after Rollins’ illness or passing.
These materials may help determine whether the investment was properly recommended and whether material information was disclosed.
Haselkorn & Thibaut Represents Investors in FINRA Arbitration Claims
Haselkorn & Thibaut represents investors nationwide in securities arbitration claims involving broker-dealers, financial advisors, private placements, DSTs, non-traded real estate investments, and other complex alternative investment products.
Investors who suffered losses in Epoch Huntsville DST, Valeo Groupe Americas offerings, or investments recommended by Concorde Investment Services LLC may have options to pursue recovery through FINRA arbitration.
If you invested in Epoch Huntsville DST or another Valeo Groupe Americas investment through Concorde Investment Services and have concerns about what was disclosed to you, contact Haselkorn & Thibaut for a confidential consultation.
