Troy Thomas: $400K DST Complaint Against McDermott Advisor

A recent investor complaint against Huntington Beach, California financial advisor Troy Thomas (CRD# 4691720) alleges that his conduct resulted in six-figure damages. Financial Industry Regulatory Authority records show that he is registered as a broker with McDermott Investment Services.

Mr. Thomas’s BrokerCheck report discloses multiple investor complaints. The most recent, filed in March 2026, alleges that as a representative of McDermott Investment Services, he made an unsuitable investment recommendation, breached his fiduciary duty, misrepresented and omitted material facts, failed in his supervisory responsibilities, acted negligently, breached contract, and conducted inadequate due diligence in connection with a Delaware Statutory Trust (DST) purchased as part of a 1031 exchange. The pending complaint alleges damages of $400,000.

In a statement included with the complaint’s disclosure, Mr. Thomas defended himself against the allegations and denied wrongdoing. “Claimant is an avid and experienced investor with decades of experience investing in real estate and structured real estate vehicles, including dozens of DSTs in connection with many tax-advantaged 1031 exchanges,” he wrote. “With respect to the DST at issue, Firm and Representative advised Claimant against making the investment, but Claimant chose to invest anyway, signing additional disclosures acknowledging he was making the investment, on an unsolicited basis, against Representative’s advice. Claimant’s allegations are meritless, and Firm and Representative intend to defend themselves vigorously.”

According to the Financial Industry Regulatory Authority, Troy Thomas holds 22 years of securities industry experience. Recorreds, he has been registered as a broker with McDermott Investment Services since 2012. His past registrations include Centaurus Financial, Direct Capital Securities, and MCL Financial Group. His credentials include the passage of four securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; the General Securities Principal Examination, or Series 24; and the General Securities Representative Examination, or Series 7. He holds 51 state licenses. (Information current as of May 9, 2026.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.