McDermott Investment Services, LLC and Debra Jo Schleining have come into focus following a customer arbitration that highlights important considerations for investors evaluating complex investment products and advisor recommendations. While one case does not define a career, it can offer useful insight into how suitability standards, product risk, and investor awareness intersect in real-world situations.
In February 2025, a customer filed FINRA arbitration case no. 25-00239, seeking $1,580,000 in damages related to investment recommendations made in 2015. The claim alleged that Ms. Debra Jo Schleining recommended Delaware Statutory Trust (DST) investments that were unsuitable based on the client’s financial profile. The matter was settled in November 2025 under confidential terms.
According to publicly available records on FINRA BrokerCheck (CRD #2768752), this represents the only disclosed customer dispute on Ms. Schleining’s record. She has no reported regulatory actions or disciplinary history, which is relevant context when evaluating the significance of a single arbitration.
Understanding the case and the investment at issue
The core of the complaint centers on suitability, a foundational requirement under FINRA Rule 2111. This rule requires that financial advisors ensure recommendations align with a client’s financial situation, investment goals, risk tolerance, and liquidity needs.
The investment product in question, a Delaware Statutory Trust, is commonly used in 1031 exchanges to defer capital gains taxes. DSTs allow investors to hold fractional interests in large commercial real estate assets, typically managed by a sponsor. While these structures can offer passive income and tax advantages, they are also associated with notable limitations.
As explained by Investopedia, DSTs are generally illiquid, meaning investors cannot easily sell or exit their positions. They also require investors to relinquish control over management decisions, placing reliance on the sponsor’s expertise.
These characteristics make DSTs suitable for some investors but potentially problematic for others, particularly those who may need access to liquid funds or who have lower risk tolerance. In cases where a large portion of an investor’s portfolio is concentrated in such assets, the risks can become more pronounced.
Professional background of debra jo schleining
Debra Jo Schleining, also known under several aliases including Debra J. Schleining and Debbie Schleining, is a financial advisor based in Omaha, Nebraska. She is currently affiliated with McDermott Investment Services, LLC, which operates under the name Turner Investment Corporation, a firm known for its focus on DSTs and 1031 exchange strategies.
Over the course of her career, Ms. Schleining has been associated with several firms, including:
- Colorado Financial Service Corporation
- Lighthouse Capital Corporation
- J.P. Turner & Company
- Berthel Fisher & Company
- Mutual of Omaha Investor Services
- Allstate Financial Services
- Lincoln Benefit Financial Services
Movement between firms is common in the financial services industry and does not necessarily indicate misconduct. However, investors often review employment history alongside disclosure records when conducting due diligence.
What suitability means for investors
Suitability is not simply a regulatory technicality; it is central to investor protection. Advisors must take into account multiple factors, including:
- Age and time horizon
- Income and net worth
- Investment experience
- Risk tolerance
- Liquidity needs
- Tax considerations
If these elements are not properly aligned with a recommended investment, disputes can arise. Complex products like DSTs require particular care, as their structure may not be fully understood by all investors.
Research has shown that financial misconduct, while not widespread, is not negligible. Studies have estimated that roughly 7% of financial advisors have some form of misconduct disclosure, and these individuals often continue to operate within the industry. This underscores the importance of independent verification and investor education.
Key considerations and broader lessons
The confidential resolution of the arbitration means that specific findings were not made public. Settlements can occur for many reasons, including the cost of litigation, business considerations, and risk management. They do not necessarily imply wrongdoing, nor do they fully validate the claims made.
Still, situations like this reinforce several practical takeaways for investors:
- Review an advisor’s record through FINRA BrokerCheck before investing
- Ask detailed questions about liquidity and exit options for any investment
- Avoid overconcentration in a single asset class or strategy
- Request written documentation of investment recommendations and rationale
- Seek a second opinion when considering complex or high-value investments
Investors who believe they may have experienced unsuitable recommendations or other issues can explore educational resources such as financialadvisorcomplaints.com to better understand their options.
Final perspective
The case involving McDermott Investment Services, LLC and Debra Jo Schleining illustrates how investment suitability, product complexity, and investor awareness intersect. A single dispute, particularly one involving recommendations made many years prior, must be viewed in context. At the same time, it highlights the importance of transparency, due diligence, and clear communication between advisors and clients.
For investors, the broader message is straightforward: understanding what you invest in—and why it was recommended—remains one of the most effective safeguards in financial decision-making.
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