National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended Versity Investments (now known as Crew Enterprises) and its affiliated entities, to their customers. Our law firm believes many investors may have been misled about the risks, use of funds, regulatory status, and liquidity associated with these offerings.
KlaymanToskes is currently representing investors in arbitration claims against investment firms that recommended unsuitable investments in Versity Investments (now known as Crew Enterprises). Investors who suffered losses in Versity Investments, or any other private placement investments, may be entitled to financial recovery through the filing of a FINRA arbitration claim.
The following Versity-sponsored Delaware Statutory Trusts (DSTs) and affiliated entities are named in the civil lawsuit and are under review in connection with investor losses:
If you suffered losses in Versity Investments, contact securities attorney Steven D. Toskes at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Versity Investments, LLC, now operating as Crew Enterprises, LLC, is a real estate investment firm that sponsored and managed a series of Delaware Statutory Trusts (DSTs) and other Regulation D private placement offerings. The firm focuses primarily on multifamily and student-housing properties, often located near college campuses across multiple U.S. states.
Versity Investments raised capital from investors by offering fractional ownership interests in real estate through DSTs and affiliated entities. These investments were commonly marketed as income-producing alternatives suitable for 1031 exchange investors and individuals seeking steady distributions without active property management responsibilities.
Versity Investments (now known as Crew Enterprises) and certain principals are currently facing a $56 million civil lawsuit filed by KHCA Funding LLC and Knights Hill Ireland II DAC. The complaint alleges that Crew Enterprises, acting through principals Blake Wettengel and Tanya Muro, misappropriated more than $56 million in investor proceeds that were owed to the plaintiffs.
According to the lawsuit, investor funds were allegedly diverted to finance other real estate transactions and for personal use, rather than being applied as represented. The claims include breach of contract, unjust enrichment, conversion, fraud, and civil conspiracy, and seek $56 million in damages along with injunctive relief.
In addition, on July 17, 2025, Crew Enterprises reportedly received a $47 million judgment related to an alleged breach of obligations owed to a lender. Brian Nelson, a founder associated with Versity Investments, is also named as a defendant in the civil complaint.
Versity Investments are high-risk, illiquid, private placement investments. Private placements or “Reg D” offerings can be highly volatile investments, as they are early-stage companies with limited information and are not bound to the same Securities Exchange Commission (“SEC”) disclosure requirements as public investment offerings.
Investors may consider this type of commercial real estate investment for the monthly returns and diversification offered, without any management duties. However, DSTs are highly illiquid, and are likely only suitable for investors who can afford to have their funds tied up for long holding periods.
Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector, as well as failure to conduct adequate due diligence on investment offerings recommended by the firm and failing to act in the best interest of the customer.
DSTs are considered “non-conventional investments” by the Financial Industry Regulatory Authority (“FINRA”). In Notice to Member 03-71 FINRA reminded brokers/financial advisors and broker-dealers of their specific requirements regarding the sale of non-conventional investments, including conducting appropriate due diligence, performing a reasonable-basis suitability analysis, performing customer specific suitability analysis for recommended transactions, and providing a balanced disclosure of the risks and rewards associated with a particular product, especially when selling to retail investors.
If you suffered losses in Versity Investments due to your brokerage firm/financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
Potential conflicts of interest may arise when issuers incentivize brokerage/investment advisory firms with substantial commissions to promote their financial products. A problem often associated with private placement investment recommendations is the high sales commissions brokers typically earn for selling these investments. A brokerage firm or representative that recommends investments to their customer for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you generally won’t go through the traditional court system with a lawsuit. The correct path is through FINRA arbitration, a specific process designed for these types of disputes. It involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you need help filing a FINRA arbitration claim to recover losses in Versity Investments, and/or suffered any other investment losses, you are encouraged to contact attorney Steven D. Toskes, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Versity Investments. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered investment losses as a result of a recommendation to purchase Versity Investments, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.