Inspired Healthcare Capital Investors Sue KCD Financial and Three of its Brokers For Up to $5,000,000 in Damages
Shepherd Smith Edwards and Kantas Is Representing This Elderly Retiree Couple
In their Inspired Healthcare Capital lawsuit, two senior investors are accusing KCD Financial and its Wisconsin brokers, Joel Reid Blumenschein, David Scott Wilson, and Bret Michael Frum, of the losses sustained in risky, illiquid IHC Delaware Statutory Trusts (DSTs).
The Claimants in the Inspired Healthcare Capital Lawsuit contend that these were unsuitable investment recommendations, as was the overconcentration of them in their account. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this retiree couple in pursuing damages from the broker-dealer and its financial advisors.
These were inexperienced investors who entrusted a significant chunk of their retirement savings to KCD Financial and its registered representatives. This couple made it clear from the start that their assets were for their retirement, and they did not want to take on any undue risk. They were assured by the Respondents that the Inspired Healthcare Capital series of DSTs they were recommending were relatively safe, secure, and guaranteed.
Not only that, but recommending that a couple recommend millions of dollars in investments from a single issuer is unsuitable for the obvious reasons. Now, Inspired Healthcare Capital is no longer in operation. It is also under investigation by the US Securities and Exchange Commission (SEC).
It doesn’t help that KCD Financial and its financial advisors never fully explained the extreme risks involved with investing in DSTs and the multi-lawyers of fees involved. We believe that the marketing and selling of IHC to these investors was not in their best interests.
Respondents made a lot of money off the Claimants. Commissions and other fees totaled 12.5% Meanwhile, these investors were repeatedly assured all was well with their investments.
Inspired Healthcare Capital DSTs are involved in the healthcare industry, including senior living facilities. This also puts them in the real estate investment space. Delaware Statutory Trusts are considered Regulation D private placement investments, which makes them generally unsuitable for retail investors, conservative investors, and inexperienced investors.
Other claims these investors are making in their FINRA arbitration claim against KCD Financial and its brokers include negligence, gross negligence, breach of contract, breach of fiduciary duty, unjust enrichment, and more.
Why Hire Our Inspired Healthcare Capital Fraud Attorneys?
Shepherd Smith Edwards and Kantas is continuing to file investor lawsuits against the brokerage firms and their financial advisors who sold Inspired Healthcare Capital to customers. During your free, initial case consultation, we can assess whether you have grounds for suing your broker over your IHC DST losses. If we decide to work together, you would become part of our unit of Inspired Healthcare Capital, which is filing in FINRA arbitration.
It is more beneficial to work with a securities law firm that is already handling multiple broker fraud claims over the same investment than it is to retain someone who may not be very well-versed in why a financial product failed and the reasons that brokerage firms should be held accountable.
Delaware Statutory Trust loss cases can be complex. We have an in-depth understanding of these private placements. Not only that, but we have been fighting for investors for decades. Most of our clients have secured full or partial financial recovery because of our skilled and committed efforts.
Contact Our Delaware Statutory Trust Fraud Attorneys:
To discuss your Inspired Healthcare Capital losses, call (800) 259-9010 or fill out this online contact form, and we will schedule a meeting with you.