Florida Retiree Files FINRA Lawsuit Seeking Up to $500K

The Inspired Healthcare Capital investor lawyers at Shepherd Smith Edwards and Kantas are representing a retired Daytona Beach senior in a FINRA lawsuit against Arkadios Capital seeking up to $500,000 in damages. The claim alleges that the firm unsuitably overconcentrated the client’s retirement assets in a high-risk, illiquid Delaware Statutory Trust before the developer filed for bankruptcy.

Shepherd Smith Edwards and Kantas Inspired Healthcare Capital Investor Lawyers (investorlawyers.com), are representing a Daytona Beach investor who suffered losses in Inspired Healthcare Capital Pinellas Park DST in his broker fraud case against Arkadios Capital and its financial advisor, Jonathan Drew Keller. Our Client, who is a retired septuagenarian, should never have been sold this Delaware Statutory Trust from an unknown issuer with not much of a track record.  He is suing for up to $500K in damages.

This senior is an inexperienced investor who made it clear that his assets were for retirement. He wasn’t interested in taking on undue risk. This man is now accusing the Respondents of overconcentrating his money in a high-risk, illiquid investment that is generally considered a poor investment recommendation for retirees. Meantime, Arkadios and its broker made a lot of money off this Claimant, earning up to 12.5% in fees and commissions from selling Inspired Healthcare Capital (IHC) to this investor and others.

Arkadios financial advisor, Jonathan Keller, has worked for 25 years in the industry. He is also an investment adviser with the firm.

Why Are Inspired Healthcare Capital Investors Suing Their Brokers?

This assisted living developer and its related entities filed for Chapter 11 bankruptcy protection earlier this year. But even before then, there were problems. Investor redemptions and distributions were suspended. The US Securities and Exchange Commission (SEC) opened an investigation that is still ongoing. Now, many investors are filing FINRA arbitration claims against their financial advisors because of investment losses in IHC.

Our Inspired Healthcare Capital investor lawyers are representing many investors against brokerage firms that earned high commissions and fees for selling IHC Funds and DSTs. Our clients, many of them seniors, are making similar allegations for suing, including:

• Unsuitable investment recommendations
• Misrepresentations and omissions
• Conflicts of interest
• Failure to supervise
• Fraud
• Overconcentration
• Violation of Regulation Best Interest
• Breach of contract
• Breach of fiduciary duty
• Vicarious liability
• Other legal grounds.

Suing your broker for damages, rather than relying on the outcome of any bankruptcy proceedings, brings with it a greater likelihood of full financial recovery if you hire seasoned investor lawyers to fight for you.

What Is A Delaware Statutory Trust, and What Are The Investment Risks Involved?

IHC was the issuer of a number of DSTs. This is a real estate investment in which multiple investors get to hold fractional interests in income-generating, institutional-grade properties. A DST can be used to defer capital gains taxes via a 1031 exchange.

Delaware Statutory Trusts are generally unsuitable for retail investors, especially conservative retirees. Risks involved in investing:

• Illiquidity. They cannot be resold. Investors needing to get to their money fast should stay away.
• Investors have no say in the running of the DST.
• Upon closure, no new capital can come in, which could be a problem if more
• Potential tax consequences
• Performance relies a great deal on the sponsor to do their job.

Brokers know the high risks, yet many of the IHC investors we are representing say they were never fully apprised of what could lead to serious losses for them.

Representing Inspired Healthcare Capital Investors  Against Arkadios and Other Brokerage Firms

If you are an IHC investor who wants to explore your legal options, contact us online or call our Inspired Healthcare Capital Investor Lawyers at (800)  259-9010 or call (800) 259-9010 today. You want to work with seasoned securities lawyers who know how to fight for your financial recovery.