The complaint targets Chay Lapin, Dwight Kay and Matthew McFarland for allegedly recommending unsuitable DSTs and committing financial elder abuse
LOS ANGELES, CA, UNITED STATES, October 7, 2026 /EINPresswire.com/ — The national securities law firm KlaymanToskes has confirmed the submission of a $1.8 million FINRA arbitration claim against WealthForge Securities, LLC, along with financial advisors Chay Lapin (CRD# 6275140), Dwight Kay (CRD# 5376903), and Matthew McFarland (CRD# 6675310), all of whom are tied to Kay Properties and Investments, LLC (“Kay Properties”). The matter has been designated FINRA Case No. 26-02232.
Kay Properties presently identifies Kay as its founder and CEO, Lapin as its president, and McFarland as a senior vice president. The filing alleges that the named parties pushed unsuitable Delaware Statutory Trust (“DST”) private placements onto an older investor who was looking for principal protection and dependable retirement income.
Anyone who has experienced losses tied to DSTs recommended through Kay Properties, WealthForge Securities, Lapin, Kay, or McFarland is urged to reach out to attorney Lawrence L. Klayman, Esq. at 888-997-9956 or investigations@klaymantoskes.com for a complimentary, private consultation regarding possible avenues for recovery.
Per the Statement of Claim, the investor took proceeds from a real estate sale and applied them to a Section 1031 tax-deferred exchange. With no substantial background in DSTs, he leaned on the Respondents to identify suitable replacement assets that would protect his capital, deliver consistent income, and postpone capital gains taxes.
The filing asserts that over a single month, the Respondents placed $1.8 million of the investor’s retirement funds into four intricate, hard-to-liquidate DST offerings: 345 Flats, DST; Pacific Oak-Related Meridian DST; REVA Kay Tampa UBC, DST; and The Nine, DST.
Roughly a year later, payouts from two of the DSTs ceased or fell sharply, with a third also suspending regular distributions afterward. In addition, The Nine, DST has initiated bankruptcy proceedings.
The claim also contends that the Respondents skipped proper due diligence and failed to reveal material risks and conflicts of interest. Kay Properties co-sponsored REVA Kay Tampa UBC, DST, and Kay is said to have endorsed the investment while not fully disclosing his own financial stake in it.
Even as the DSTs encountered increasing difficulties, Lapin and McFarland allegedly kept reassuring the family that the investments were performing well and pushed for more money to be put into The Nine, DST prior to its bankruptcy filing. The claim further alleges that the Respondents kept in touch with the investor even as they knew his mental faculties were declining, and they hid the fact that other customer complaints involving comparable DST recommendations existed.
The filing seeks a minimum of $1.8 million in damages and includes allegations of unsuitable investment advice, insufficient due diligence, misrepresentations and omissions, breach of fiduciary duty, negligence, inadequate supervision, Regulation Best Interest violations, and financial elder abuse.
“This investor handed his retirement savings to financial professionals tied to Kay Properties who allegedly portrayed these DST investments as low-risk, fully vetted, and able to generate steady income,” said Lawrence L. Klayman, Managing Partner of KlaymanToskes. “Financial professionals and brokerage firms must carry out genuine due diligence, reveal conflicts of interest, and make certain that complex and illiquid private placements are suitable for the investors receiving those recommendations.”
During the timeframe in question, Lapin, Kay, and McFarland were registered with WealthForge, and they are now registered with FNEX Capital, LLC. As of October 6, 2026, each broker’s current BrokerCheck report lists three customer disputes.
Investors who have incurred losses involving Kay Properties, 345 Flats, Pacific Oak-Related Meridian, REVA Kay Tampa UBC, The Nine, NP Skyloft, or any other DST and 1031 exchange investments are invited to contact KlaymanToskes at 888-997-9956 or investigations@klaymantoskes.com for a free and confidential consultation regarding their potential recovery options.
About KlaymanToskes
KlaymanToskes is a prominent national securities law firm that concentrates exclusively on securities arbitration and litigation for retail and institutional investors worldwide in substantial and intricate securities cases. The firm has secured more than $650 million in Securities Litigation and FINRA Arbitration matters. KlaymanToskes operates offices in California, Florida, Nebraska, New York, and Puerto Rico.
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Contact
Lawrence L. Klayman, Esq.
KlaymanToskes, PLLC
+1 888-997-9956
investigations@klaymantoskes.com
