Shepherd Smith Edwards and Kantas Is Representing This Six-Figure Lawsuit in FINRA Arbitration
Two Florida senior investors are suing Emerson Equity for up to $500,000 in damages for losses they sustained in Delaware Statutory Trusts (DSTs) issued by Inspired Healthcare Capital (IHC). Also named as respondents in their investment loss recovery claim are Emerson Equity broker Patrick Wang Lam and the firm’s Control Person Dominic Julio Baldini.
Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing these Fort Lauderdale retirees in their Inspired Healthcare Capital claim, which we filed for them in Financial Industry Regulatory Authority (FINRA) arbitration. These were risky, illiquid, Regulation D private placement offerings that were unsuitable for these claimants from the start. Emerson Equity should never have marketed and sold IHC DSTs to them.
Inspired Healthcare Capital offerings are privately traded, unregulated investments that were always inappropriate for retail investors, including most retirees. They should only have been sold to accredited investors who could understand the risks involved.
Inspired Healthcare Trust is now defunct. The US Securities and Exchange Commission (SEC) is conducting a regulatory investigation into this alternative asset company.
Our Clients are two septuagenarians who entrusted a good portion of their life and retirement savings to Emerson Equity, which was the underwriter, sole marketer, and managing broker-dealer for Inspired Healthcare Capital DSTs. That the firm had these multiple roles likely created a conflict of interest.
What Was Emerson Equity Paid to Sell Inspired Healthcare Capital DSTs to Customers?
Meanwhile, the brokerage firm and its registered representatives made a substantial amount from the sale of IHC investments:
- 6% commission to the broker.
- 1% Dealer management fee.
- 1% Broker allowance.
- 1.5% Wholesaling fee.
- 3% Marketing expense.
That’s 12.5% of fees, even as these Florida investors have sustained serious losses. Also, as sole underwriter, Emerson Equity may have been paid even more for services involving that role.
One can only wonder at the misrepresentations and omissions that appear to have been made, seeing as Respondents continually assured our Clients that all was well with their IHC Delaware Statutory Trustinvestment. They either understood these Reg D offerings were not in the couple’s best interests but recommended them anyway, or if not, then they should have known and were negligent.
In their FINRA lawsuit, these seniors are also alleging breach of contract, failure to supervise, breach of fiduciary duty, vicarious liability, and more.
Customers of Emerson Equity Broker Patrick Lam Allege Unsuitability and More
According to his BrokerCheck CRD, Emerson Equity financial advisor Patrick Lam has been in the industry for 21 years, including six years with this firm. At least four customer disputes involving him were made in 2025.
Why Hire Our Inspired Healthcare Trust Loss Recovery Attorneys?
Shepherd Smith Edwards and Kantas Trust Loss Recovery Attorneys are representing other investors against Emerson Equity and Dominic Baldini. We have also filed other investor recovery claims involving Patrick Lam.
We understand how IHC Delaware Statutory Trusts failed and why you may be able to sue your financial advisor for damages. If you work with us, you will become part of our unit of Inspired Healthcare Capital DST loss claims, and everyone at our securities firm will be fighting for you.
Over the decades, we have helped thousands of investors to collectively secure many millions of dollars in awards and settlements from negligent and liable brokers and investment advisers.
Call (800) 259-9010 or fill out this online contact form to schedule your free case consultation.