Inspired Healthcare Capital Investor From Mississippi Sues Great Point Capital
Our Regulation D Private Placement Recovery Attorneys Are Representing This Claimant
Shepherd Smith Edwards and Kantas (investorlawyers.com) has filed a Financial Industry Regulatory Authority (FINRA) lawsuit on behalf of a Mississippi investor against brokerage firm Great Point Capital. Our Client sustained substantial losses in Inspired Healthcare Capital (IHC) and its Fund V. He is now suing for up to six figures in damages for his portfolio losses.
The Claimant is someone who is nearing retirement. He entrusted his life and retirement savings to Great Point Capital and its broker. Unfortunately, this investor alleges, Great Point Capital unsuitably recommended these products that were too risky for him, given his age and investment goals. These were illiquid investments and particularly bad for retirees, considering they cannot be resold.
Also unsuitably recommended to him, our Client contends, were the private placements Palladius and Legion Capital. Overconcentration of a portfolio with too many of these alternative investments is typically a bad strategy for the majority of investors, including many experienced investors.
In his FINRA arbitration case, the claimant is accusing Great Point Capital of unsuitability, overconcentration, misrepresentations and omissions, best interest violations, breach of fiduciary duty, failure to supervise, potential ongoing fraud, breach of contract, and more, resulting in portfolio losses from private placements.
This was an inexperienced investor who should never have been placed in these alternative investments. Inspired Healthcare Capital is now defunct and under regulatory investigation by the US Securities and Exchange Commission (SEC). Its DSTs are involved in the real estate and the senior housing space. Investor distributions have now stopped.
Meanwhile, the Respondent got paid a multi-level of fees:
1% Dealer management fee.
1% Broker-dealer allowance.
3% marketing expense fee.
1.5% wholesaling fee.
6% commission to the broker.
That is 12.5% that this Inspired Healthcare Capital investor had to pay.
Like the IHC Delaware Statutory Trusts, which are Regulation D offerings, the other private placement investments that were sold to our Client paid higher commissions than more traditional investments.
This Claimant worked with former Great Point Capital broker Larry Kiefer, who worked in the industry for over 40 years. He is not a registered representative at this time.
This is not the only Inspired Healthcare Capital recovery lawsuit we have filed against Great Point Capital. We recently filed a seven-figure claim against the broker-dealer on behalf of a Colorado retiree. That investor worked with Great Point Capital financial advisor Robert Lee Boggess.
Both Kiefer and Boggess are not respondent in the investor lawsuits filed by their respective customers.
Private Placements Are Too Risky For Many Investors
It is important that your broker exercise caution when marketing and selling private placements to investors. These are unregistered, complex investments that should only be promoted to accredited investors who have the necessary experience to weather and understand the risks they are taking on.
Shepherd Smith Edwards and Kantas has been representing private placement investors in recouping their portfolio losses caused by the wrongful or negligent actions of their brokers and broker-dealers for many years. We understand the complex nature of these investments and know how to maximize an investor’s chances for a full recovery.
Call Our Private Placement Recovery Attorneys:
But first, it is important that you contact us today to schedule your free, no-obligation case consultation. We can determine whether you have grounds for a broker misconduct claim. You can also call our Private Placement Recovery Attorneys at (800) 259-9010.