Skip to Content

Zamansky LLC Investigates Lighthouse Capital Group LLC Over Potential Investment Fraud In Sales of Regulation D, REIT and DST Offerings

May 17, 2023 Active Cases & Investigations

Our firm is investigating potential investment fraud claims by customers of Lighthouse Capital Group, LLC (Lighthouse Capital Group) in Pasadena, California.  In May 2023, Lighthouse Capital Group consented to an Acceptance, Waiver and Consent (AWC) with FINRA, the Financial Industry Regulatory Authority, which censured the firm and ordered a penalty fine of  $250,000.

According to the AWC, from 2017 to 2018, Lighthouse Capital Group raised $273 million through 65 private offerings while its supervisory system, including its written supervisory procedures, was not reasonably designed to comply with SEC Regulations to prevent general solicitation.   Without a robust supervisory system, Lighthouse Capital Group also could not comply with FINRA suitability requirements that protect investors, as well as properly supervise new sales of private offerings.

Lighthouse Capital Group specializes in selling private real estate offerings, usually structured in the form of Delaware Statutory Trusts (DSTs).   Over the past four years, Lighthouse Capital Group’s offerings include a series of ExchangeRight Net-Lease DSTs, the ExchangeRight Income Fund and other real estate DSTs and real estate investment trusts (REITs).  These private offerings should be sold only to qualified investors under SEC Rules.

Non-Public REITs and DSTs Can Become Illiquid

Non-public real estate offerings, such as DSTs, REITs and Regulation D private placements, are potentially high-risk investments that are not suitable for most investors.  These investments may be attractive on the surface because they may pay steady distributions and their price may not be subject to stock market volatility.  However, these investments may also suddenly become illiquid and cease all distributions and redemptions if the real estate market suffers a downturn. These investments are also rife for potential investment fraud and conflicts of interest.

Any investor in an ExchangeRight or other DST, REIT or Regulation D offering who has a concern should have their investment reviewed for potential investment fraud.  A claim for investment fraud may exist where a key risk, like illiquidity, was not disclosed, the investment incurs losses that are unsuitable or unexpected for the investor, or the investor has too much of his net worth invested in these illiquid investments.

What Can Investors Do? Speak to a Skilled Investment Fraud Attorney Today

If you are an investor in a DST, REIT or other Regulation D investment sold by Lighthouse Capital Group and wish to discuss whether you have a case for potential investment fraud, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or by email at, for a free evaluation of your potential legal rights.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
View More