Investor Sues Emerson Equity And Its Brokers, Under The Moniker “The Sherer Group” Over Inspired Healthcare Capital Losses. Shepherd Smith Edwards and Kantas Inspired Healthcare Capital Fraud Lawyers are Representing This Retiree in His 7-Figure Investment Loss Lawsuit
Another investor is suing Emerson Equity and its brokers Timothy John Sherer, Ryan Jonathan Sherer, Dominic Julio Baldini, Patrick Wang Lam, and Zhi Ying Guan over losses sustained in the beleaguered Inspired Healthcare Capital (IHC). The alternative investment firm is under regulatory investigation by the US Securities and Exchange Commission (SEC).
In his FINRA arbitration claim, this retiree is requesting up to $1,000,000 in damages. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this claimant. We are also representing other IHC investors against Emerson Equity and these same brokers, including a couple that are pursuing up to $5,000,000 in damages.
This latest Inspired Healthcare Capital investment loss recovery claim involves a senior investor who entrusted his life and retirement savings to the broker-dealer and its financial advisors, who used the moniker The Sherer Group. Our client met them through direct marketing and invitations to “free” retirement planning seminars.
Once these Emerson Capital brokers earned his trust, they appear to have unsuitably recommended and overconcentrated his funds in the Inspired series of privately traded REITs. What they should have done is diversify this retiree’s account with more traditional, less risky investments.
Inspired Healthcare Capital acquires and runs senior living and healthcare facilities. Its offerings include private placements, such as Delaware Statutory Trusts (DSTs) and real estate investment trusts (REITs). It has now suspended investment offerings and investor distributions.
Inspired Healthcare Capital Generates High Commissions for Brokers
Privately-traded products, also known as private placements, pay much more substantial commissions than traditional products. They are risky investments that should not be placed in an IRA account, which is where some of the recommendations by the Emerson Equity brokers occurred for this investor.
Emerson Equity and its financial advisors made a lot of money from this Claimant: 6% in commissions, a 1% Dealer management fee, a 1% Broker-dealer Allowance, a 1.5% wholesaling fee, and a 3% marketing fee on a more than $1M investment in Inspired Healthcare Capital.
The brokerage firm also unsuitably recommended other DSTs and REITs without regard to the resulting unnecessary real estate exposure and overconcentration. Meanwhile, our client was continually assured that all was well with his investment.
In his Inspired Healthcare Capital loss claim, this investor is alleging unsuitability, misrepresentations and omissions, concentration, a failure to supervise, breach of contract, breach of fiduciary duty, and more.
Contact Our Inspired Healthcare Capital Fraud Lawyers
Shepherd Smith Edwards and Kantas Inspired Healthcare Capital Fraud Lawyers have plenty of experience in recovering damages for investors against broker-dealers in FINRA arbitration, mediation, and litigation.
Call (800) 259=9010 or fill out this form.