Gregory Hill (CRD#: 850818), a registered representative with Emerson Equity LLC in San Mateo, California, is currently involved in a customer dispute in which a client is seeking over $200,000 in damages, according to Gregory Hill’s BrokerCheck record accessed on February 28, 2020.
What happened to lead to this customer dispute? On January 6, 2020, customers allege that Gregory Hill and his firm at the time, McDermott Investment Services, LLC (CRD#: 154926), failed to perform sufficient due diligence in regard to a 1031 exchange recommendation of a Delaware Statutory Trust (DST). The clients are requesting $209,306 in damages.
Delaware Statutory Trusts, a type of real estate investment in which up to 35 investors can become shareholders of a property, are often touted by brokers as good investments because they are tax-deferred. The reality is much more complicated. DSTs carry high fees and the structure of the trust makes it easier for banks to foreclose on the properties—which can include beleaguered suburban strip malls.
What is a 1031 Exchange? The Internal Revenue Service (IRS) stipulates that an investor can defer paying capital gains on an investment property when it is sold—as long as those gains are used to purchase another, “like-kind” property. In this way, brokers can use the prospect of tax deferral to keep investors trapped in a cycle of property investments.
Over his 37-year career in the securities industry, Gregory Hill has worked for 15 brokerage firms:
- Colorado Financial Service Corporation (CRD#: 104343)
- McDermott Investment Services, LLC (CRD#: 154926)
- MDS Securities, LLC (CRD#: 159555)
- ARI Financial Services, Inc. (CRD#: 137608)
- Realty Capital Securities, LLC (CRD#: 145454)
- American Realty Capital Markets (CRD#: 31147)
- Cole Capital Corporation (CRD#: 31147)
- NNN Capital Corp. (CRD#: 17932)
- Inland Securities Corporation (CRD#: 15807)
- Fittin, Cunningham & Lauzon, Inc. (CRD#: 6866)
- Allegheny Investments, Ltd. (CRD#: 7597)
- Intervest Group, Inc. (CRD#: 8767)
- Thomson McKinnon Securities Inc. (CRD#: 829)
- Growth Facts, Inc. (CRD#: 4413)
Gregory Hill is licensed to sell securities in California, Connecticut, Florida, Illinois, Maine, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, and Pennsylvania. He has passed the Series 63 – Uniform Securities Agent State Law Examination, the Series 65 – Uniform Investment Adviser Law Examination, the SIE – Securities Industry Essentials Examination, and the Series 7 – General Securities Representative Examination.
If Gregory Hill was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation with a securities attorney.