Near-Retiree Alleges Broker-Dealer of Making an Unsuitable Investment Recommendation

A Missouri near-retiree is seeking up to $100,000 in damages through a FINRA arbitration lawsuit against brokerage firm Ni Advisors for recommending unsuitable, high-commission Inspired Healthcare Capital investments that led to near-total losses. The lawsuit, handled by Shepherd Smith Edwards and Kantas, alleges financial advisor misconduct and unsuitability following Inspired Healthcare Capital suspending redemptions and filing for Chapter 11 bankruptcy.

A Missouri investor is suing for up to $100K in damages after he sustained losses in Inspired Healthcare Capital. He contends that brokerage firm Ni Advisors unsuitably recommended this alternative investment, overconcentrating his account with it.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this near retiree against Ni Advisors in FINRA arbitration.

Novice Investor Suffers Losses in Inspired Healthcare Capital Fund V

Our Client is someone who relied on this brokerage firm to properly handle his money. He entrusted his retirement funds and life savings. The investor ended up sustaining losses in an opaque IHC fund composed of Delaware Statutory Trusts (DSTs).

DSTs are risky, illiquid investments. They are generally unsuitable for near retirees. Yet Ni Advisors made little effort to better diversify this customer’s account with other products. Instead, the Claimant contends, the broker-dealer recommended other unsuitable products that charged high commissions.

In his FINRA lawsuit, this investor is alleging unsuitability, excessive concentration, misrepresentations and omissions, breach of fiduciary duty, failure to supervise, negligence, reckless negligence, fraud, breach of contract, violation of Regulation Best Interest, vicarious liability, and more.

Our Client is looking at a near total loss of his entire principal and everything he entrusted to Ni Advisors.

What Are The Commissions and Fees That Brokers Can Earn From Selling IHC Funds and DSTs?

Inspired Healthcare Capital paid the brokerage firms we are suing for investors up to:

6% in commissions.
1% dealer management fee.
1.5% wholesaling fee.
1% broker-dealer allowance.
3% marketing fee.
12.5%

Why Are Inspired Healthcare Capital Investors Filing FINRA Lawsuits?

Last year, the alternative asset firm suspended redemptions and offerings.
IHC filed for Chapter 11 bankruptcy earlier this year.
With bankruptcy proceedings, investors often don’t get most of their money back.
Investors are regarded as unsecured creditors in bankruptcy court.
It could be years before the case is concluded.
Suing the broker that sold IHC—if financial advisor misconduct was involved—can be a stronger avenue for financial recovery.
FINRA arbitration is where lawsuits against brokerage firms by their customers are submitted.

Brokers reportedly earned more than $100M from selling Inspired Healthcare Funds and DSTs, even as investors are struggling to get their money and related losses back.

When you file a FINRA lawsuit, you are making an individual claim for financial recovery. You can do this even while the bankruptcy case is still going on.

Why Hire Seasoned, Inspired Healthcare Capital Loss Lawyers?

You want to be represented by securities attorneys who are knowledgeable about this assisted living developer and the IHC Funds and DSTs they were issuing.
It is important that you have investment loss recovery lawyers who will protect your legal rights and know how to maximize your chance for financial recovery in FINRA arbitration.
Shepherd Smith Edwards and Kantas is representing dozens of investors against Ni Advisors and the other brokerage firms that unsuitably recommended IHC products. We are trusted FINRA lawyers who know how to maximize your chances for a full financial recovery.

Talk To Us About Your Inspired Healthcare Capital Investment Losses Today

Ask for your free case consultation by contacting our Inspired Healthcare Capital Loss Lawyers online or calling (800) 259-9010 now.