Edward Eric Fernandez of Capulent LLC Faces 16 Pending Customer Disputes Over Versity Investments-Sponsored Delaware Statutory Trusts

If you are a current or former client of Edward Eric Fernandez and you purchased Hayworth Tanglewood DST, Vintage DST, Wolf Run DST, Tailor Lofts DST, Versity Income Property Notes, or any other Real Estate Security sponsored by Versity Investments LLC, Versity Invest LLC, or Crew Enterprises through him, the FINRA BrokerCheck record discloses 16 pending customer disputes. Mr. Fernandez is a registered representative at Capulent LLC (CRD# 155155) in Irvine, California, where he has been registered since 10/05/2017.

Allegations

According to BrokerCheck, Disclosure 1 of 16 in the Customer Dispute – Pending section involves FINRA Docket No. 26-00675, filed 03/26/2026, while Mr. Fernandez was registered with Capulent LLC. According to BrokerCheck, the allegations are that “Claimants allege that an investment Hayworth Tanglewood DST, sponsored by Versity Investments LLC (aka Crew), were unsuitable and that material risks related to the sponsor, structure, and underlying properties were not adequately disclosed.” According to BrokerCheck, the product type is “Real Estate Security” and alleged damages are $175,000.00.

According to BrokerCheck, Disclosure 2 of 16 in the Customer Dispute – Pending section involves FINRA Docket No. 26-00594, filed 03/16/2026, while Mr. Fernandez was registered with Capulent LLC. According to BrokerCheck, the allegations are that “Claimants allege that an investment Vintage DST, sponsored by Versity Investments LLC (aka Crew), were unsuitable and that material risks related to the sponsor, structure, and underlying properties were not adequately disclosed.” According to BrokerCheck, the product type is “Real Estate Security” and alleged damages are $150,000.00.

According to BrokerCheck, Disclosure 6 of 16 in the Customer Dispute – Pending section involves FINRA Docket No. 26-00478, filed 02/28/2026, while Mr. Fernandez was registered with Capulent LLC. According to BrokerCheck, the allegations are that “Claimants allege that investments in Wolf Run DST and Vintage DST, Delaware Statutory Trusts sponsored by Versity Investments LLC and Versity Invest LLC (aka Crew), were unsuitable and that material risks related to the sponsor, structure, and underlying properties were not adequately disclosed.” According to BrokerCheck, the product type is “Real Estate Security” and alleged damages are $403,591.22.

According to BrokerCheck, Disclosure 12 of 16 in the Customer Dispute – Pending section involves FINRA Docket No. 25-02591, filed 11/21/2025, while Mr. Fernandez was registered with Capulent LLC. According to BrokerCheck, the allegations are that “Clients allege unsuitable recommendations of Tailor Lofts DST, that was sponsored by Versity Investments.” According to BrokerCheck, the product type is “Real Estate Security” and alleged damages are $197,281.00.

According to BrokerCheck, Disclosure 15 of 16 in the Customer Dispute – Pending section involves FINRA Docket No. 25-01617, served 08/11/2025, while Mr. Fernandez was registered with Capulent LLC. According to BrokerCheck, the allegations are that “Claimants allege unsuitable recommendations of three Versity/Crew investments (Hayworth Tanglewood, DST and Versity Income Property Notes, LLC).” According to BrokerCheck, the alleged damages amount explanation states that “Due to the going concern status of the investment, exact damages are not known at this time as the sponsor is still operating and making arrangements for recovery. It is clear that missed distributions would exceed $5,000 however, but it is not likely that the entire face value of the investments would be lost.”

According to BrokerCheck, 16 Customer Dispute – Pending matters in total are open against Mr. Fernandez, and the disclosure descriptions visible across pages 14 through 28 of the BrokerCheck PDF identify the same recurring product types: Real Estate Securities sponsored by Versity Investments LLC, Versity Invest LLC, and Crew Enterprises LLC, plus the related Versity Income Property Notes. According to BrokerCheck, Mr. Fernandez has been registered with Capulent LLC since October 5, 2017; the disclosure events on the record were reported beginning in mid-2025.

It is important to note that, as of the time of this report, these complaints are still pending, and Mr. Fernandez has denied the allegations in each matter. No findings of wrongdoing have been made.

Private Placements and Regulation Best Interest

Private placement Delaware Statutory Trusts sold under Regulation D are illiquid, carry upfront selling commissions and offering expenses, depend on a single sponsor for property operations and distributions, and offer no public market exit. The product is typically marketed to 1031 exchange buyers who have just sold investment real estate and need like-kind replacement property to defer capital gains.

According to the SEC’s adopting release for Regulation Best Interest (Exchange Act Release No. 34-86031), a broker-dealer must, when making a securities recommendation to a retail customer, “act in the best interest of the retail customer at the time the recommendation is made,” and must “exercise reasonable diligence, care, and skill” to “understand the potential risks, rewards, and costs associated with the recommendation” and to have a “reasonable basis to believe that the recommendation is in the [retail customer’s] best interest” based on the retail customer’s investment profile. The compliance date for Regulation Best Interest is June 30, 2020. FINRA Rule 2111 imposes a parallel suitability standard for recommendations before June 30, 2020. According to FINRA Notice to Members 05-18, which addresses TIC and 1031 exchange offerings, “NASD staff believes that it is not appropriate for members that recommend a TIC transaction simply to rely on representations made by the sponsor in an offering document,” and a reasonable investigation “could include background checks of the sponsor’s principals, review of the agreements (e.g., property management, purchase and sale, lease and loan agreements) and property inspection.” FINRA Rule 3110 requires the firm to establish and maintain a supervisory system reasonably designed to achieve compliance with securities laws, and a failure to supervise is independently actionable against the firm and its supervisory principals.

Warning Signs

For investors in Regulation D Delaware Statutory Trust offerings, the patterns that tend to support a claim include: a recommendation that placed a high percentage of a 1031 exchange rollover into a single DST or into multiple DSTs sponsored by the same sponsor; the absence of any meaningful discussion of the sponsor’s principals, prior litigation history, or affiliated-entity structure at the time of the sale; reliance on a generic risk disclosure or a marketing piece that described the DST as “stable,” “conservative,” or “predictable” without independent verification; suspended monthly distributions; lender defaults at the property level; and silence from the sponsor about property operations after distributions stopped. If any of these patterns apply to your account, a free consultation with a securities law attorney can help you understand whether you have a potential claim for damages.

Steps to Take Right Now

1. Gather your account statements, trade confirmations, and any correspondence with your broker or firm, including emails, texts, and written materials about the investments.
2. Look up your broker on FINRA BrokerCheck at brokercheck.finra.org to review their full disclosure record.
3. Contact a securities arbitration attorney for a consultation to evaluate your options.

Talk to Rosenberger + Kawabata

Rosenberger + Kawabata represents retail investors in FINRA arbitration proceedings involving unsuitable recommendations of Delaware Statutory Trust and other private placement products. Contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.

Sources

The information in this post comes from FINRA’s public BrokerCheck database. You can view the full detailed report (CRD# 2956661) here.