Shepherd Smith Edwards and Kantas Is Representing this Semi-Retiree and Many Others Against This Brokerage Firm

A 70-year-old investor has filed a FINRA lawsuit against Emerson Equity seeking up to $1,000,000 for the unsuitable and overconcentrated sale of illiquid Inspired Healthcare Capital (IHC) investments. The claim alleges that Emerson Equity and its brokers prioritized high commissions over the client’s interests, leading to devastating losses following IHC’s recent bankruptcy filing.

An older California investor is suing Emerson Equity, control person Dominic Julio Baldini, and its former brokers Troy Lee Robertson and Matthew David Copley for up to $1,000,000. The Respondents marketed and sold Inspired Healthcare Capital investments to this senior.

IHC recently filed for Chapter 11 Bankruptcy Protection. Its private placement funds and Delaware Statutory Trusts (DSTs) are generally unsuitable for most older investors. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this 70-year-old Claimant in Financial Industry Regulatory Arbitration (FINRA).

Why Is This Semi-Retiree Suing Emerson Equity Over His IHC Losses?

Delaware Statutory Trusts, which are involved in physical real estate properties, are private, illiquid, and cannot be resold. They are especially bad for IRA accounts. This investor had one. Yet that didn’t stop the Respondents from unsuitably recommending two IHC Funds holding DSTs:

Inspired Healthcare Capital Liquidity Fund
Inspired Healthcare Capital Income Fund V

Emerson Equity was the managing brokerage firm and underwriter of all IHC Funds and DSTs. 62% of this investor’s portfolio was overconcentrated with the two IHC Funds. Such concentrations would be considered unsuitable even if these were liquid “blue chip” stocks/bonds rather than alternative investments from an unknown entity.

Emerson Equity and its brokers earned up to 12.5% in fees and commissions. This was never fully explained to this investor. Respondents also unsuitably recommended two other high commission, illiquid investments: the speculative Alpine Ranch Minerals and DPM Belle Oaks. The latter is a private placement real estate investment offering that is also underwritten by Emerson Equity.

Senior Investor Alleges Broker Misconduct Over Up to $1M in Inspired Healthcare Capital Losses

In his FINRA lawsuit, this senior investor, who is looking at a near-total loss of his investments and everything he entrusted to the Respondents, is alleging the following:

Unsuitability
Overconcentration
Misrepresentations and omissions
Negligence
Gross negligence
Breach of contract
Breach of fiduciary duty
Regulation Best Interest violation
Vicarious liability
And more.

Brokers Were By Other Customers Over IHC Losses

Troy Robertson, who has worked for eight years in the industry, became a Copley Alternative Investments broker this year. He is also a Copley Financial Group investment adviser. Robertson’s BrokerCheck CRD lists three other pending customer disputes filed since last September, making similar allegations of broker misconduct.
Matthew Copley is the CEO of Copley Alternative Investments and the founder of Cooley Financial Group. He has the same still-pending customer disputes listed.

How Much Did Brokers Make By Selling IHC Funds and DSTs To Customers?

The brokerage firms and their registered representatives that marketed and sold Inspired Healthcare to customers earned more than $100M in commissions and fees. They raised over $1.2B for this alternative asset firm from the sales of IHC investment products.

IHC investors are looking at serious, even total losses.

Should You Wait Out The Bankruptcy Proceedings or Explore Your Legal Options?

Bankruptcy cases seldom render much, if anything, for investors seeking to get back their investment. What you can do is explore your legal options with our seasoned Inspired Healthcare Capital loss attorneys. Allow us to determine whether you have grounds for an investment loss recovery claim against your brokerage firm.

Find Out Whether You Should Sue Your Broker Over Your Inspired Healthcare Capital Losses

Shepherd Smith Edwards and Kantas is a trusted IHC recovery law firm. We have decades of experience securing awards and settlements for investors against brokerage firms.

Call (800) 259-9010 or fill out this online form to schedule your free case assessment.