Investor Allegations Involving Bart Harrison and Legacy 1031
Bart Harrison, the founder of Legacy 1031, is the subject of multiple FINRA complaints according to his public BrokerCheck report. The report was last accessed on March 4, 2026. This article is based on the customer allegations described in that report. A live version of Mr. Harrison’s BrokerCheck report can be accessed here.
If you invested with Bart Harrison or Legacy 1031 and experienced losses, you may have legal options. A 1031 attorney at MDF Law can review your account and help determine whether you have a claim. Call 800-767-8040 today for a confidential consultation. Don’t delay.
Attorney Discussing 1031 Lawsuits
Fast Facts about Bart Harrison’s FINRA Complaints
The following information was gathered as of March 4, 2026:
| Date | Event | Damages Requested |
| March 28, 2025 | Claim is alleging negligence, breach of fiduciary duty, fraud, misrepresentation, and violation of Alabama Securities Laws, in relation to investment made in October of 2019. | $200,000.00 |
| February 10, 2025 | Statement of claim alleges Breach of Fiduciary Duty, Violation of FINRA Rules, Breach of Contract, and Negligence related to investment made in 2019. | $125,000.00 |
| May 20, 2024 | The client states that he was unaware the DST investment would not be converted to an UPREIT in two years, and claims he would not have made the investment in February 2022 had he known this. | Unspecified |
Understanding FINRA’s Rules of Conduct
As a registered broker, Bart Harrison is subject to the rules and oversight of the Financial Industry Regulatory Authority (FINRA). FINRA regulates brokerage firms and their representatives and establishes standards governing how brokers must conduct themselves when recommending investments to clients. These rules require brokers to deal fairly with customers, make suitable investment recommendations based on a client’s financial situation and objectives, and fully disclose the risks associated with complex investments. When brokers fail to meet these obligations, investors may have the right to pursue claims through FINRA arbitration.
Suitability is a fundamental principle in securities regulation. Under FINRA rules, a broker must have a reasonable basis to believe that a recommended investment is appropriate for a particular client based on the client’s financial situation, investment objectives, risk tolerance, liquidity needs, age, and overall portfolio. This obligation is especially important when recommending complex products such as Delaware Statutory Trust (DST) investments used in connection with a 1031 exchange. DST offerings are typically illiquid private placements tied to specific real estate assets, and they often involve leverage, long holding periods, and limited control by the investor. Because many 1031 investors are seeking tax deferral after selling appreciated property, they may feel pressure to reinvest quickly, which makes careful suitability analysis even more critical.
What Makes a 1031 Investment “Unsuitable”?
When a 1031 investment goes wrong, several suitability-related issues often emerge:
- The investor needed liquidity but was placed into a long-term, illiquid DST investment.
- The risks of the underlying real estate or leverage were not clearly explained.
- The investor believed there was a short-term exit strategy (such as an UPREIT conversion) that never materialized.
- The investment represented too large a percentage of the investor’s net worth or retirement savings.
- The broker failed to discuss alternative 1031 options with different risk profiles.
- The investor was seeking income stability but the property’s performance or financing structure created significant risk.
- The investor did not understand that DST interests generally cannot be easily sold or redeemed before the property is liquidated.
Important Information about FINRA’s Complaint System
Customer dispute disclosures appear in BrokerCheck when an investor formally alleges misconduct related to an investment recommendation or the handling of an account. These disclosures can arise from written complaints, arbitration claims, or civil lawsuits. The allegations may involve issues such as negligence, breach of fiduciary duty, misrepresentation, unsuitable investment recommendations, or violations of securities laws. When a complaint is filed, brokerage firms are required to report the dispute to FINRA.
The disclosures themselves do not necessarily mean that wrongdoing occurred. They reflect the claims made by investors and are recorded to promote transparency in the securities industry. Some disputes settle, some are withdrawn, and others proceed through arbitration or litigation. The presence of a disclosure simply indicates that an investor raised a concern serious enough to trigger reporting obligations. Investors should contact an attorney with questions about their specific case.
Lose money with Legacy 1031 or Bart Harrison?
If you invested with Bart Harrison or Legacy 1031 and believe the recommendations you received were unsuitable or the risks were not clearly explained, you should have your account reviewed by an attorney. Investors who suffer losses due to improper investment advice may have the right to pursue recovery through FINRA arbitration. The securities attorneys at MDF Law regularly represent investors in disputes involving unsuitable recommendations, misrepresentations, and complex real estate investments such as DSTs. Call MDF Law today at 800-767-8040 for a confidential review of your situation and to learn whether you may have legal options to recover your losses.