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Inspired Healthcare Capital Fund: Oct., 2025 Update

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Updated on: October 6, 2025

National investment loss lawyers KlaymanToskes is investigating financial advisors and brokerage firms who unsuitably recommended investments in Inspired Healthcare Capital, an Arizona-based senior housing and healthcare real estate investment fund. The firm is currently representing Inspired Healthcare Capital (IHC) investors seeking millions of dollars in investment losses. On September 12, 2025, Inspired Healthcare Capital sent investors a letter stating “We regret to inform you that no distributions will be made at this time…” As of October 2025, investors are left without a clear outlook for the status of their investments.

This letter follows a July 2025 announcement that Inspired Healthcare Capital suspended all investment offerings and halted investor distributions, citing an ongoing regulatory review by the U.S. Securities and Exchange Commission. The company also shut down its in-house management arm, Volante Senior Living, following the resignation of its CEO and has transitioned operations to a third-party operator. Reportedly, only 10–15 of Inspired’s 35 senior living communities are reportedly performing well, raising concerns about the fund’s financial condition and the potential for investor losses. Investors who suffered losses in Inspired Healthcare Capital Fund, DSTs or any other private placement investments, may be entitled to financial recovery through the filing of a FINRA arbitration claim.

Investment Losses in Inspired Healthcare Capital Fund?

Investment Losses in Inspired Healthcare Capital Fund?

Contact KlaymanToskes

If you suffered losses in Inspired Healthcare Capital, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

September 24, 2025 Update: Emerson Equity Files Lawsuit Against Inspired Health Capital and its CEO

Emerson Equity Bridge Fund I, an affiliate of broker-dealer Emerson Equity, has filed lawsuit against Inspired Healthcare Capital (IHC) and its CEO, Luke Lee, over a $1.5 million loan made in December 2024. The fund alleges IHC and Lee misrepresented their financial condition by providing audited statements and personal financial disclosures that concealed serious distress and over $200 million in personal guarantees.

Emerson claims the loan went into default and that, despite a demand for repayment by September 1, 2025, no funds have been returned. The lawsuit seeks recovery of the principal, accrued interest, and exemplary damages for what it characterizes as fraudulent conduct, against the backdrop of IHC also suspending investor distributions.

What is Inspired Healthcare Capital Fund?

Inspired Healthcare Capital Fund is a high-risk private placement that filed a Form D with the SEC in 2020 seeking to raise $30,000,000 from investors. Private Placement investments (“Reg D” offerings) offered under Rule 506(b) of Regulation D are inherently volatile, typically involving long lock-up periods, limited liquidity, and minimal SEC disclosure requirements compared to publicly traded investments.


Financial professionals and their firms have an obligation to conduct adequate due diligence on investment offerings prior to making recommendations to their customers, in addition to having a fiduciary duty to recommend suitable investments that are in their customer’s best interests.

In addition to Inspired Healthcare Capital Fund, KlaymanToskes is investigating the following investments on behalf of investors nationwide:

  • Inspired Healthcare Capital Income Fund, LLC
  • Inspired Healthcare Capital Liquidity Fund, LLC
  • Inspired Healthcare Capital Security Income Fund, LLC
  • Inspired Healthcare Capital Fund LP
  • Inspired Healthcare Capital Income Fund 2 LLC
  • Inspired Healthcare Capital Income Fund 3 LLC
  • Inspired Healthcare Capital Income Fund 5 LLC
  • Inspired Healthcare Capital Income Fund 5 Notes, LLC
  • Inspired Senior Living of Appleton DST
  • Inspired Senior Living of Arlington Heights DST
  • Inspired Senior Living of Athens DST
  • Inspired Senior Living of Augusta DST
  • Inspired Senior Living of Beaverton DST
  • Inspired Senior Living of Brookhaven DST
  • Inspired Senior Living of Candlelight Cove DST
  • Inspired Senior Living of Carson Valley DST
  • Inspired Senior Living of Chesterfield DST
  • Inspired Senior Living of Cinnaminson DST
  • Inspired Senior Living of Creswell Development, LLC
  • Inspired Senior Living of Dartmouth DST
  • Inspired Senior Living of Delray Beach DST
  • Inspired Senior Living of Dunedin DST
  • Inspired Senior Living of Eatonton DST
  • Inspired Senior Living of Eugene DST
  • Inspired Senior Living of Fort Myers DST
  • Inspired Senior Living of Grapevine DST
  • Inspired Senior Living of Hamilton DST
  • Inspired Senior Living of Lake Orion DST
  • Inspired Senior Living of Largo DST
  • Inspired Senior Living of Las Vegas DST
  • Inspired Senior Living of Melbourne DST
  • Inspired Senior Living of Mequon DST
  • Inspired Senior Living of Naperville DST
  • Inspired Senior Living of New Braunfels DST
  • Inspired Senior Living of North Haven DST
  • Inspired Senior Living of Pinellas Park DST
  • Inspired Senior Living of Reno DST
  • Inspired Senior Living of Round Rock DST
  • Inspired Senior Living of San Marcos DST
  • Inspired Senior Living of St. Petersburg DST
  • Inspired Senior Living of Winery Lane Development, LLC

What Are the Risks of Investing in Inspired Healthcare Capital Fund or DSTs?

Inspired Healthcare Capital is a Senior living private equity firm that reportedly targets the acquisition, development and management of real estate assets. Like many Reg D offerings, the Inspired Healthcare Capital Fund involves a high degree of risk, illiquidity, and limited transparency. These types of investments are typically marketed to accredited investors but are sometimes sold to retail investors without fully disclosing the potential downsides.

Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector, as well as failure to conduct adequate due diligence on investment offerings recommended by the firm.

If you suffered losses in Inspired Healthcare Capital Fund or DSTs and/or any other investments due to your brokerage firm/financial advisor, contact securities attorney Lawrence L. Klayman to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.

Inspired Healthcare Capital Fund Investment Losses

Potential conflicts of interest may arise when issuers incentivize brokerage/investment advisory firms with substantial commissions to promote their financial products. A problem often associated with private placement investment recommendations is the high sales commissions brokers typically earn for selling these investments. A brokerage firm or representative that recommends investments to their customer for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.

Can I File a Lawsuit to Recover Losses?

To recover investment losses, you generally won’t go through the traditional court system with a lawsuit. The correct path is through FINRA arbitration, a specific process designed for these types of disputes. It involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.

What is a FINRA Arbitration Claim?

FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).

The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.

If you need help filing a FINRA arbitration claim to recover Inspired Healthcare Capital Fund losses, and/or any other investment losses, you are encouraged to contact attorney Steven D. Toskes, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Signs Investors Should Look Out For About Their Brokerage Accounts

As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Inspired Healthcare Capital Fund. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following: 

  • You have substantial losses in your investment accounts
  • You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
  • Your broker misrepresented investment opportunities, or failed to disclose details about investments 
  • You notice unauthorized transactions in your investment accounts
  • Your broker is not returning your calls or emails
  • You filed a complaint with your brokerage firm that has not been resolved
  • You see a mistake on your statement, or receive a fraudulent statement

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you suffered investment losses as a result of a recommendation to purchase Inspired Healthcare Capital Fund, and/or any other investments by your broker/financial advisor, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

FAQs For IHC Investors

  • What can I do if my Inspired Healthcare Capital distributions have been suspended?

Investors affected by the IHC suspended distributions should speak to an experienced securities attorney immediately. It is KlaymanToskes’ opinion that companies do not typically recover from these signs of financial distress. If your brokerage firm or financial advisor recommended this investment, you may be entitled to a financial recovery through FINRA arbitration. Our attorneys are available at 888-997-9956 to discuss your specific situation to determine if you are eligible.

  • What is the current status of IHC distributions?

On September 12, 2025, Inspired Healthcare Capital (IHC) sent investors a letter stating “We regret to inform you that no distributions will be made at this time…” This follows months of missed distribution payments, and no clear path forward. Investors are encouraged to explore all legal options at this time in effort to recover their investment losses. To learn more, contact KlaymanToskes.