Investors of Nelson Partners' Skyloft Austin May Be Owed At Least $74M
Broker-Dealers Sold Private Placement Shares In Texas Luxury Student Housing To Retail Customers, Including Retirees
HOUSTON, Aug. 4, 2022 /PRNewswire/ -- Shepherd Smith Edwards & Kantas LLP, a Texas brokerage firm of investment lawyers and arbitration attorneys, are looking into claims of losses involving Nelson Partners' Skyloft Austin investors. Many of those who invested in this troubled luxury student housing building have sued Nelson Partners which is the property management firm that marketed this deal in 2019. They sued Axonic Capital, the hedge fund that provided $30M in additional financing to buy the 18-story property.
Skyloft investors, each invested $100K to $500K, accuse Nelson Partners CEO Patrick Nelson of fraud and allegedly diverting some of their funds to pay for operations at his other properties.
Some contended that they were the victims of a Ponzi-like scam and believed that Nelson transferred some of the money to offshore accounts.
Earlier in 2022, a Texas state judge approved a preliminary settlement in which Nelson Partners would pay a group of investors $50M. If approved, the company would have eighteen months to develop the funds.
Nelson Partners Skyloft investors are claiming that they were never informed about the dispute between Axonic and the property management firm until the hedge fund notified them by letter that they had taken over the student housing building and intended to sell it.
Skyloft Austin is a private real estate placement. This can be a risky investment that lacks transparency. Private placements are unsuitable for many retail customers, including most retirees and others with conservative risk tolerance levels.
Brokerage firms are obliged to ensure that any investment they recommend is in a customer's best interests and suitable for them according to their investing profile. They are also required to conduct the proper due diligence to verify that any recommendation is legitimate and that clients are not being placed in financial harm.
You may wish to consider pursuing your own Financial Industry Regulatory Authority (FINRA) arbitration claim against your broker-dealer for damages. Our investment lawyers with decades of experience have represented clients facing losses, nationwide.
Contact us at Shepherd Smith Edwards and Kantas (at investorlawyers.com)
Our Dallas stockbroker negligence attorneys: (214) 613-5306
Our Houston private placement lawyers: (713) 227-2400
Nationwide: (866) 901-3775
SOURCE Shepherd Smith Edwards & Kantas LLP
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