Were you the victim of Emerson Equity LLC broker Daniel Pikula (CRD# 2563165)?
Erez Law Files Claim Alleging in Excess of $5 Million in Damages
Erez Law recently filed a FINRA arbitration claim against Emerson Equity LLC.
The Erez Law clients, who were inexperienced investors who entrusted Daniel Pikula and Emerson Equity with their life savings, allege the following in the newly filed FINRA claim.
The clients invested $20 million, which represented virtually all of their retirement savings. The complaint alleges that the clients did not want to expose their life savings to undue risk.
Erez Law alleges that despite their retirement status, known investment objectives, and risk aversion, he violated their trust and recommended and implemented a reckless, speculative, and grossly unsuitable investment strategy, which caused them to incur staggering losses to their irreplaceable retirement savings. It is alleged that Daniel Pikula recommended a self-serving, grossly unsuitable, and reckless investment strategy of dangerously concentrating the Erez Law clients’ irreplaceable retirement savings in high-risk and high commission, illiquid alternative and private placement investments.
According to the claim, the broker recommended the clients invest more than 85%, or over $17 million, in several speculative, unsuitable, and illiquid private placements, almost certainly to generate exorbitant commissions. He induced clients to concentrate their life savings into these alternative investments by representing that they “100% guaranteed” the return of their principal investment.
He allegedly recommended the clients invest $1.3 million in a private student housing real estate investment trust (REIT) offered by Versity called The Ruckus Phase II (now known as Timberline on the Green). In May 2025, Timberline was foreclosed on by its lender, and the project’s attempt to file Chapter 11 bankruptcy was unsuccessful.
He recommended a $500,000 investment in another private student housing non-traded REIT offered by Versity called University Park–Berkeley. In May 2025, the clients learned that the University Park investment had impending foreclosure proceedings.
It is alleged that he recommended the clients invest $1.8 million in two private, non-traded REITs offered through Versity Invest, LLC, now known as Crew Campus. According to the claim, he recommended the clients invest in these two REITs under the guise that they would receive 100% of their principal back within two years and would receive an 18% annual bonus/dividend upon return of their principal. The clients have not received dividends or income in connection with these investments, and no return of their principal despite holding this investment for nearly 5 years.
The complaint also alleges that the clients invested $4.5 million in Tasty Brands I, LP and Tasty Brands II, LP, which are speculative, illiquid, and unsuitable private placement investments. As of October 2024, Tasty Brands ceased paying dividends, and its investment in Tasty Brands, LP is illiquid and cannot be readily sold at the reported share price.
The broker also recommended the clients invest more than $1 million in the Carter Multifamily Growth and Income Fund II, LLC, another speculative, illiquid, and unsuitable private placement investment. In October 2023, Carter Multifamily Growth announced in a letter to is investors that the fund would be suspending distributions to investors, citing a significant increase in interest rates and insurance costs.
He also allegedly recommended the clients invest $1 million in the Inspired Healthcare Capital Income Fund 5, another speculative, non-traded, illiquid, and unsuitable private placement investment.
The clients also realized a $1.5 million loss of their $3 million investment in Series D Preferred Shares of yet another speculative, illiquid, and unsuitable private placement called Four Springs Capital Trust.
Erez Law alleges that the broker was motivated by the desire to generate the exorbitant commissions associated with private placements, often as high as 6%, which is several times greater than the commissions associated with traditional fixed income investments. Additionally, he failed to adequately disclose the speculative nature of these non-traded and illiquid investments, as well as the level of risk incurred by the clients by overconcentrating their portfolio with these unsuitable private placement investments. He also failed to adequately disclose that the clients would not be able to readily liquidate their private placements at their reported share price.
The complaint alleges that the broker’s self-serving and recklessly concentrated investment strategy was grossly unsuitable for and not in the best interest of the clients, who have suffered significant losses and cannot liquidate their remaining private placement investments at their reported share price because they are completely illiquid.
By recommending such overconcentrated positions in these high-risk, illiquid, and unsuitable alternative and private placement investments to the clients, Daniel Pikula and Emerson Equity LLC magnified the already significant risks associated with these already speculative positions. There was absolutely no reasonable basis for concentrating the clients’ portfolio in these high-risk, unsuitable, and illiquid alternative and private placement investments.
Erez Law Files Claim Alleging $1 Million-Plus in Damages
Erez Law recently filed a FINRA arbitration claim against Emerson Equity LLC on behalf of unsophisticated and inexperienced investors who alleged that the broker recommended the clients invest in excess of $1,800,000 of their assets held with Emerson Equity LLC, in unsuitable, high-commission, illiquid private placements. The clients entrusted the broker with their securities investments, informing him that their primary objective was the preservation of capital. Despite their investment objectives and risk aversion, he recommended and implemented a reckless, speculative, and grossly unsuitable investment strategy, which caused them to incur significant losses to their securities investments.
Daniel Pikula recommended that the clients invest in speculative, illiquid, and unsuitable private placement investments known as L Bonds offered by GWG Holdings, Inc. Although the L Bonds were marketed and sold by the firm and broker as a safe investment that offered reliable income payments and a guaranteed return of principal upon redemption, in reality, the L Bonds were non-conventional, unrated, illiquid private placement investments that were inherently high risk and unsuitable. According to the complaint, the L Bonds that the broker recommended and sold to the clients paid exorbitant commissions, upwards of 5%, which is multiples greater than the commissions typically associated with more traditional fixed income investments. Because the L Bonds were illiquid investments, there was no secondary public market for these offerings. As a result, investors’ ability to resell these bonds was extremely limited and/or non-existent.
It is also alleged that the broker failed to adequately disclose the enormous risks associated with investing in the GWG L Bonds to the clients. He recommended the clients invest $500,000 in a single L Bond. By recommending an overconcentrated position in a single risky and illiquid investment, he needlessly exposed the clients to extreme liquidity risk, in addition to the other already significant underlying risks associated with the L Bond that he recommended and sold to them. Regrettably, now that GWG has filed for bankruptcy, L Bond investors, including the Erez Law clients, cannot expect the return of their capital invested in the L Bonds.
It is alleged that Daniel Pikula also recommended the clients invest in a private, non-traded REIT offered through Versity Invest, LLC, now known as Crew Campus.
He recommended the clients invest $250,000 in The Ruckus Phase II, a non-traded REIT offered by Versity, under the guise that they would receive 100% of their principal back and would receive an 18% annual bonus/dividend upon return of their principal investment. He also recommended the clients invest $500,000 in a speculative, illiquid, and unsuitable private placement known as Tasty Brands, LP, $300,000 in the Inspired Healthcare Capital Income Fund 5, and $250,000 Carter Multifamily Growth and Income Fund II, LLC.
It is alleged that he was undoubtedly motivated by the desire to generate the exorbitant commissions associated with private placements, often as high as 5%, which is several times greater than the commissions associated with traditional fixed income investments.
Daniel Pikula Background
He has been registered with Emerson Equity LLC in Wellington, Florida, since 2018, and Money Manager Inc. in Wellington, Florida, since 2015.
He was registered with Emerson Equity LLC in Wellington, Florida, from 2021 to 2022, Revere Securities LLC in Boca Raton, Florida, from 2017 to 2018, and Newbridge Securities Corporation in West Palm Beach, Florida, from 2008 to 2015.
In February 2014, FINRA suspended him for 15 days and ordered him to pay a $5,000 civil and administrative penalty after it found that he “exercised discretion in two customers’ accounts of his member firm.” FINRA found that he “did not have written authorization from the customers to place discretionary trades and he failed to obtain written acceptance of the accounts as discretionary from his firm.”
In December 2016, the Florida Office of Financial Regulation ordered him to pay a $10,000 civil and administrative penalty and fine following allegations that he “prohibited business practices, unauthorized discretionary trading, and violated the registration agreement.”
Daniel Pikula Customer Complaints
Regrettably, the Erez Law complaint is not an isolated incident.
He has been the subject of eight customer complaints between 2001 and 2025, according to his CRD report. The most recent complaints are regarding:
June 2025. “Breach of fiduciary duty; negligence; fraud; breach of contract; Violation of FL securities and investor protection act.” The case is currently pending. The complaint was regarding real estate securities, and it took place while he was registered with Emerson Equity LLC.
June 2025. “Breach of contract, breach of fiduciary duty, negligence and gross negligence, misrepresentations and omissions, violation of FINRA rules, violation of federal securities laws, violation of FL Securities Act, violation of Best Interest Obligations (Reg BI).” The customer is seeking $100,000 in damages, and the case is currently pending. The complaint was regarding corporate debt, and it took place while he was registered with Emerson Equity LLC.
May 2025. “Breach of fiduciary duty, negligence, fraud, negligent supervision, breach of contract, violation of the Florida securities and investor protection act.” The customer is seeking $1,500,000 in damages, and the case is currently pending. The complaint was regarding corporate debt and real estate securities, and it took place while he was registered with Emerson Equity LLC.
July 2023. “Breach of Fiduciary Duty and Negligence.” The customer sought $400,000 in damages, and the case was settled for $150,000. The complaint was regarding corporate debt, and it took place while he was registered with Emerson Equity LLC.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Emerson Equity LLC may be liable for investment or other losses suffered by Daniel Pikula’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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