After suspending dividends in September, Arizona-based Inspired Healthcare Capital filed for Chapter 11 bankruptcy, estimating liabilities of $1-10 billion and placing investors at risk of losing their investments. Inspired Healthcare Capital sponsored non-traded real estate investment trust (REIT) offerings, Regulation D private offerings, and Delaware Statutory Trusts (DSTs) with names corresponding to entities Inspired Healthcare Capital owned, invested in, or managed.
According to InvestmentNews, broker-dealers that sold Inspired Healthcare Capital generated more than $100 million in fees and commissions for Inspired's failing securities. The article names Emerson Equity as managing broker dealer for many of Inspired's products. Emerson Equity also sold more than $1 billion in GWG Holdings, another bankrupt investment.
FINRA and numerous investors previously accused Emerson Equity (headquartered in San Mateo, California) of failing to supervise brokers who unsuitably sold GWG products to customers, resulting in losses and excessive sales charges, including commissions.
Inspired Healthcare Capital's founder, Luke Lee, allegedly used investor funds/fees to purchase cars, a condo in Las Vegas, and "significant" non-business expenses. InvestmentNews Bruce Kelly quotes one senior industry executive as saying: “By the time Inspired Healthcare gets liquidated and the trustees and lawyers all get paid, there’s not going to be much, if anything, left for investors in these private placements.”
Inspired Healthcare Capital previously shut down Volante Senior Living, since transferred to an operator called Leisure Care. Inspired's other DSTs include Inspired Senior Living of Appleton, Arlington Heights, Athens, Brook Haven, Carson Valley, Delray Beach, Eugene, Hamilton, Lake Orion, Largo, Las Vegas, Mequon, Naperville, Pinellas, Reno, and St. Petersburg.
Inspired Healthcare Capital also sponsors the Inspired Healthcare Capital Fund LP, IHC Ashbrook DST, IHC Candle Light Cove DST, and IHC Peachtree DST.
If you invested with any broker or investment adviser, through Emerson Equity or any other brokerage firm, who unsuitably recommended purchasing the risky-turned-bankrupt Inspired Healthcare Capital REITs, DSTs, or other offerings that have resulted in excessive commissions, fees, or outright losses that have proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.