Haselkorn & Thibaut Investigating Massive Investor Losses in NP Skyloft DST

Haselkorn & Thibaut, national investment fraud lawyers, are looking into Samuel Bruce Phillips Jr. (CRD# 2239471) activities of Cape Securities, Inc. for alleging due to unsuitable investment recommendations in NP Skyloft DST, national investment fraud lawyers.  Recent claims state that NP Skyloft breached the terms of its $35 million loan and that its loan equity provider, Axonic Capital, sold NP Skyloft’s student housing investment property.

You should contact Haselkorn & Thibaut at your earliest convenience at 1-800-856-3352 if you or a loved one has lost money investing in Nelson Partners Skyloft (NP Skyloft DST) through Samuel Bruce Phillips or any other financial advisor.

An Investor Has Filed A Claim Against Samuel Bruce Phillips Jr. for $100,000.

One customer complaint was filed on January 31, 2023, against Samuel Bruce Phillips Jr., according to FINRA BrokerCheck. The claimant claims to have participated in the 1031 DST Exchange, formally known as the NP Skyloft DST, to acquire shares in the NP Skyloft DST.

Claiming that broker/financial advisor Samuel Bruce Phillips Jr. recommended an unsuitable investment in NP Skyloft DST, the investor is seeking damages in the amount of $100,000 from Phillips and his company. In addition, the customer claims that Phillips and his company made false statements and misrepresented NP Skyloft DST, making it an unsuitable investment.

Contact Haselkorn & Thibaut at 1-800-856-33520 for a free and confidential consultation to discuss recovery options for investors who lost money on NP Skyloft DST investments recommended by Samuel Bruce Phillips Jr. at Cape Securities in McDonough, GA.

Nelson Partners Skyloft is a Real Estate Investment With No Ready Market

As a private placement investment in commercial real estate, Nelson Partners Skyloft (NP Skyloft DST) is not easily traded on the open market. Investments in private placements or “Reg D” (non-public) securities offerings are risky because they are not subject to the same disclosure requirements by the Securities Exchange Commission (“SEC”) as public investment offerings.

Nonetheless, brokers and advisors licensed by the Financial Industry Regulatory Authority (FINRA) who sold Nelson Partners Skyloft (NP Skyloft DST) could be held liable for any losses sustained by their clients.

If you are a 1031 exchange investor looking for a replacement property, you may want to consider a Delaware Statutory Trust (“DST”). Suppose you’re looking to diversify your portfolio and earn monthly returns in commercial real estate without taking on the responsibilities of a landlord. In that case, this may be a good option for you. However, due to their low liquidity, DSTs are best suited for investors who can wait for their money to grow over time.

Despite a $35 Million Loan Guarantee, Nelson Partners’ Skyloft Defaults

Nelson Partners reportedly raised over $75 million from investors to build a high-end student community near the University of Texas in Austin, Texas. This is according to the company’s Form D SEC filing. Nelson Partners is accused of falsely claiming the high demand for student housing and the number of students who have already signed leases for available dorm rooms in their advertising materials. Many older people in search of stable returns made up the investor pool.

To help pay back a loan, it took out from Preferred Equity provider

Axonic Capital, in the amount of $35 million, Nelson Partners turned to its investors for a capital infusion. NP Skyloft stopped making its $35 million loan payments to investors when the real estate market dropped during the Covid-19 pandemic. After that, Axonic Capital bought out the student housing and put it up for sale. And some investors have claimed that Axonic Capital’s ability to acquire the property was not disclosed in the memorandum from Nelson Partner.

For What Reasons Might My Broker Accept Liability For My Losses?

Before recommending a financial product to clients, brokerages and their advisors must conduct thorough research on the product. Because of their failure to investigate the preferred equity loan disclosed in the offering documents, Haselkorn & Thibaut holds the brokerage firms that sold NP Skyloft liable for negligence. Brokerages that make such mistakes can be held responsible in FINRA arbitration claims.

How do I get my money back that I lost?

FINRA (Financial Industry Regulatory Authority), a self-regulatory organization, protects investment professionals in the United States and elsewhere. Rule 2111 of the Financial Industry Regulatory Authority (FINRA) requires brokers and brokerage firms to put their clients’ interests first when advising them on investments and trading strategies.

Suppose investors suffer losses because brokers and financial advisers failed to adequately investigate Nelson Partners Skyloft (NP Skyloft DST). In that case, they may be able to recover their money from the brokerage and advisory firms.

Haselkorn & Thibaut suggests filing a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA) to recoup financial losses. FINRA arbitration can save investors a lot of money as a faster and more cost-effective alternative to litigation.

If you or a loved one has suffered significant losses from investing in NP Skyloft DST, please call Haselkorn & Thibaut at 1-800-856-3352 for a free consultation. We take cases on a contingency fee basis, which means you won’t owe us anything unless we win compensation for you.

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