- September 9, 2025
- Emerson Equity LLC
The Wolper Law Firm represents investors around the country who have lost money in complex investment strategies and products, including Delaware Statutory Trusts, or “DSTs.” The Inspired Healthcare Capital family of DSTs is a recent example of a DST “gone bad” when the issuer notified investors that it was suspending distributions pending an inquiry by the Securities and Exchange Commission (SEC). Investors who contributed capital to the Inspired Healthcare Capital family of DSTs are now facing investment losses.
The Wolper Law Firm has extensive experience litigating DST cases and, in particular, DSTs involving the senior living and healthcare sector like the Inspired Healthcare Capital family of DSTs. If you have experienced investment losses due to the Inspired Healthcare Capital family of DSTs, please contact the Wolper Law Firm, P.A. for a free consultation. We can be reached at (855) 453-8611 or by email at mwolper@wolperlawfirm.com.
November Updates on Inspired Healthcare Capital
- Inspired Healthcare Capital distributions remain suspended.
- The company is currently under a pending investigation from the Securities and Exchange Commission.
- The firm has shut down its internal operating arm, Volante Senior Living. Many of the properties have been transferred to third-party operators like Leisure Care.
- Emerson Equity has sued Inspired Healthcare Capital, seeking repayment of the loan as well as exemplary damages, citing fraudulent conduct.
What Is a Delaware Statutory Trust?
A DST is a legally recognized trust that is created for a specific business purpose. Traditionally, DSTs are utilized to provide a governing agreement by which real estate can be purchased, held, managed and administered among a pool of investors who own participation interests in the DST. The DST allows an investor the opportunity to own an interest in the underlying real estate without the responsibility of managing the property. A trustee is appointed to manage the property on behalf of the investor pool. DST investments are commonly used as a mechanism through which real estate owners can facilitate a 1031 exchange, which refers to a section of the Internal Revenue Code that allows a seller of real estate to defer paying capital gains taxes if the sale proceeds are reinvested in qualified real estate within a designated period of time.
Delaware Statutory Trust Risks To Be Aware Of
DSTs and other private placements have increased in popularity over the years as investment professionals attempt to capitalize on volatility experienced among publicly traded securities. Private placements, such as DSTs, are often marketed and sold as safe and tax-efficient income producing vehicles that are not subject to the same market forces as publicly traded securities.
While there is some level of truth to that statement, the reality is that private placements are speculative and do not have the same reporting requirements as publicly traded securities. This means that DSTs can often mask financial difficulties until it is too late. Moreover, because DSTs are illiquid, investors are often unable to sell their interests to third-parties before experiencing an investment loss.
In recent years, there has already been a great deal of stress in the DST market due to rising interest rates, rising operating costs and banks exercising the right to generate “cash sweeps,” which occurs when the lender uses the cash flow generated from the DST to cover and/or reduce the costs associated with a loan. This most commonly occurs when a tenant’s credit drops, occupancy of the property declines or other risk factors come to fruition that compromise the lender’s security in the underlying property. This has had a devastating impact on investors.
As is often the case with DSTs, individual investors do not have control of individual decisions made by the DST structure and, accordingly, rely on their financial professionals to recommend DSTs with seasoned, professional managers and creditworthy tenants that have undergone an extensive due diligence process.
About Inspired Healthcare Capital: What You Need To Know
Inspired Healthcare Capital (IHC) is a private equity firm specializing in senior housing investments. Based in Arizona, the company manages around 35 properties structured as Regulation D private placements. The company also established Volante Senior Living, an internal property management division, that has since been shuttered.
The Inspired Healthcare Capital Family of DSTs
The Inspired Healthcare Capital family of DSTs were represented to have passed an extensive due diligence process and would serve as a safe, tax-efficient investment vehicle that would produce income. However, investors have been advised that distributions for many of the DSTs have been suspended pending an inquiry by the SEC. The issuer has declined to provide any details to investors, which can be a precursor of further investment losses. These DSTs include:
- Inspired Senior Living of Appleton DST
- Inspired Senior Living of Arlington Heights DST
- Inspired Senior Living of Athens DST
- Inspired Senior Living of Augusta DST
- Inspired Senior Living of Beaverton DST
- Inspired Senior Living of Brookhaven DST
- Inspired Senior Living of Carson Valley DST
- Inspired Senior Living of Chesterfield DST
- Inspired Senior Living of Cinnaminson DST
- Inspired Senior Living of Creswell Development, LLC
- Inspired Senior Living of Dartmouth DST
- Inspired Senior Living of Delray Beach DST
- Inspired Senior Living of Dunedin DST
- Inspired Senior Living of Eatonton DST
- Inspired Senior Living of Eugene DST
- Inspired Senior Living of Fort Myers DST
- Inspired Senior Living of Grapevine DST
- Inspired Senior Living of Hamilton DST
- Inspired Senior Living of Lake Orion DST
- Inspired Senior Living of Largo DST
- Inspired Senior Living of Las Vegas DST
- Inspired Senior Living of Melbourne DST
- Inspired Senior Living of Mequon DST
- Inspired Senior Living of Naperville DST
- Inspired Senior Living of New Braunfels DST
- Inspired Senior Living of North Haven DST
- Inspired Senior Living of Pinellas Park DST
- Inspired Senior Living of Reno DST
- Inspired Senior Living of Round Rock DST
- Inspired Senior Living of San Marcos DST
- Inspired Senior Living of St. Petersburg DST
- Inspired Senior Living of Winery Lane Development, LLC
- Inspired Healthcare Capital Fund LP
- Inspired Healthcare Capital Income Fund 2 LLC
- Inspired Healthcare Capital Income Fund 3 LLC
- Inspired Healthcare Capital Income Fund 5 LLC
- Inspired Healthcare Capital Income Fund 5 Notes, LLC
- Inspired Healthcare Capital Income Fund LLC
- Inspired Healthcare Capital Liquidity Fund, LLC
- IHC – Ashbrook DST
- IHC – Candle Light Cove DST
- IHC – Peachtree DST
- IHC Security Income Fund LLC
The SEC investigation may have serious short-term and long-term effects on investors. Many investors were relying upon distributions for income and are now facing uncertainty and immediate losses. In the long term, the company will have to answer as to the cause of the shutdowns as well as if there has been fraudulent actions.
Why Investors Might Have Legal Options
Investments structured as private placement offerings, such as DSTs, may not be suitable for all investors. They carry a higher degree of risk, due to their:
- Illiquidity: Reg D offerings are not publicly traded. They are generally intended to be long-term investment vehicles, and are not well-suited to income-focused investors.
- Lack of transparency: Investors were forced to rely solely upon Inspired Healthcare Capital guidance. Reg D investments are not subject to disclosure.
- Speculative nature: The real estate market is notoriously volatile and hard to predict.
- High commissions: Many of the investments with Inspired Healthcare Capital carried up to 8% upfront commissions. This may have led financial advisors and brokers to prioritize sales over suitability.
If your broker or financial advisor misrepresented an investment opportunity to you or recommended an unsuitable investment, then you may have legal options available for recovery. Not every case will qualify, but a Delaware Statutory Trust fraud attorney may be able to advise you about your options. You may be eligible to file an Inspired Healthcare Capital lawsuit or arbitrate for recovery under FINRA guidelines. Wolper Law Firm can assist you with all of these alternatives in order to prioritize your personal financial recovery if you have been taken advantage of by your financial advisor or brokerage firm.
Potential Paths To Recovery for Those Affected by Delaware Statutory Trust Fraud
Investors who invested in the Inspired Healthcare Capital family of DSTs through brokerage firms or financial professionals may have the ability to bring a court action or FINRA arbitration claim to recover their losses. FINRA Notice to Members 10-22 provides specific requirements that brokerages and financial professionals must undertake when conducting due diligence on privately held securities, including DSTs, before recommending them to investors.
Moreover, the FINRA suitability rule requires that brokerages and financial professionals make both reasonable basis and customer specific suitability determinations prior to recommending securities to customers. These due diligence obligations are absolute, but are often disregarded by brokerage firms because they don’t have the resources or infrastructure to effectively conduct due diligence. It is often passed along to third-parties, who fail to meet the exacting standards of FINRA Notice to Members 10-22. Examples of due diligence for DSTs can include:
- DST sponsor(s) and their track records
- Underlying real estate performance
- Asset type, class, and location
- Tenant roster and lease rollover
- Anticipated return on investments
- Upfront expenses
- Additional costs like escrow fees, environmental issues, or legal costs
- Hold time and exit strategies
If your financial advisor failed to consider these elements, or withheld information from you about the risks, you may be able to file for FINRA arbitration. In other cases involving outright fraud, you may be able to sue for recovery in court.
The Wolper Law Firm, P.A. Offers Free Consultations to Discuss Losses in the Inspired Healthcare Capital Family of DSTs
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled more than 1,000 securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (855) 453-8611 or by email at mwolper@wolperlawfirm.com.
Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]