Couple Sues Emerson Equity for Up To $5,000,000 Over Inspired Healthcare Capital Losses
Retirees Allege Unsuitable Investment Recommendations Of Non-Traded REITs
Shepherd Smith Edwards and Kantas Non-Traded REIT Loss Attorneys (investorlawyers.com) are representing two claimants in their seven-figure FINRA lawsuit against broker-dealer Emerson Equity and its registered representatives Dominic Julio Baldini, Timothy John Sherer, Zhi Ying Guan, and Patrick Wang Lam.
Our clients contend that they were unsuitably recommended non-traded real estate trusts (non-traded REITs), including Inspired Healthcare Capital (IHC). Now, the investors are seeking to recoup anywhere from $1,000,000 to $5,000,000 in damages.
These two seniors entrusted their life savings and retirement funds to the respondents. They met their Emerson Equity brokers through direct marketing and invitations to “free” seminars on retirement planning. The couple made it clear from the start that they did not want to take on any undue risk.
For Emerson Equity to concentrate its account with illiquid, risky, privately-traded investments was not in these customers’ best interests. We believe the broker-dealer and its registered representatives were negligent and acted fraudulently.
Inspired Healthcare Capital paid the respondents 6% in commissions, which means the non-traded REIT earned six-figures from the nearly $3M that they invested of these retirees’ money. Not only that, but there were other fees charged, including a 1% dealer management fee, a 1% broker-dealer allowance, a 1.5% wholesaling fee, and a 3% marketing expense fee.
These two investors were even flown to Inspired Healthcare Capital’s headquarters, all expenses paid, where they were purportedly wooed by leadership.
While the respondent financial advisors operated under the moniker The Sherer Group, they are, in fact, Emerson Equity registered representatives. Emerson Equity not only acted as the sole Managing Broker-Dealer but also as the underwriter.
In their FINRA arbitration claim, our clients are alleging overconcentration, unsuitability, negligence, broker fraud, failure to supervise by Emerson Equity, best interest violations, breach of fiduciary duty, and elder financial abuse. They are looking at a near-total loss of their entire principal interest.
What Is Inspired Healthcare Capital?
Inspired Healthcare Capital is a private equity and alternative investment sponsor. It acquires and operates senior living and healthcare facilities. It has since suspended investment offerings and stopped investor distributions. The alternative asset firm is under regulatory investigation by the US Securities and Exchange Commission (SEC).
Contact Our Non-Traded REIT Loss Attorneys About Your Inspired Healthcare Capital Losses
This couple is not the only investors who sustained losses in this non-traded real estate investment trust. We are offering free, no-obligation case consultations to anyone whose broker-dealer marketed and sold them an Inspired Healthcare Capital REIT. These should only have been offered to investors for whom they were suitable. Yet, even accredited investors may now find that they, too, have suffered serious Inspired Healthcare Capital losses.
Shepherd Smith Edwards and Kantas Non-Traded REIT Loss Attorneys are a trusted securities law firm that is highly knowledgeable in how to prove liability by broker-dealers and investment advisers. We know how to maximize a client’s chances for full recovery. We have represented investors in over 1000 matters in arbitration, mediation, and litigation.
Call (800) 259-9010 or fill out this online form to request your case assessment to determine whether you have grounds for an investment loss recovery claim.