Inspired Healthcare Capital: Understanding Investor Recovery Post-Bankruptcy
MDF Law PLLC is investigating potential FINRA arbitration fraud claims involving Inspired Healthcare Capital (IHC), a Scottsdale, Arizona–based private equity sponsor that raised substantial capital for senior housing, healthcare real estate, and senior living investment programs nationwide. The law firm is pursuing claims against the broker-dealers and financial advisors who sold the investment, not Inspired Healthcare Capital itself.
Inspired Healthcare Capital sponsored and distributed a variety of alternative investments, including:
- Regulation D private placements
- Senior housing development funds
- Income-focused real estate vehicles
- Delaware Statutory Trusts (DSTs) structured for 1031 exchanges
- Real estate–backed income products tied to senior living communities
These offerings were frequently marketed to retail investors seeking stable income, portfolio diversification, and tax-advantaged exposure to healthcare real estate. Many investors were told these investments offered consistent cash flow supported by tangible real estate assets. MDF Law has reason to believe that certain broker-dealers and other third parties involved in selling this product may have violated their fiduciary duties to investors. These duties include the obligation to conduct reasonable due diligence, fully disclose material risks, ensure suitability, and act in the best interests of their clients.
We are particularly concerned about reports that elderly investors and vulnerable individuals may have been sold this product without proper risk disclosure or adequate evaluation of whether it was appropriate for their financial situation. Financial professionals have heightened responsibilities when advising senior investors, including careful assessment of suitability and transparent communication of risks.
Inspired Healthcare Capital Chapter 11 Bankruptcy Filing
On February 2, 2026, Inspired Healthcare Capital and more than 160 affiliated entities filed for Chapter 11 bankruptcy protection, reporting liabilities estimated in the billions of dollars.
The bankruptcy filing followed months of operational distress and the suspension of investor distributions. The company indicated it intended to use the Chapter 11 process to restructure debt, evaluate asset sales, and preserve potential causes of action. A bankruptcy filing does not necessarily eliminate investor claims. In many cases involving private placements and alternative investments, recovery efforts focus on brokerage firms and financial advisors that recommended the products.
IHC-Sponsored Delaware Statutory Trusts (DSTs)
Delaware Statutory Trusts (DSTs) are structured real estate securities often marketed to investors completing a 1031 exchange. Instead of directly owning property, investors purchase a passive interest in a trust that holds real estate, with all management decisions controlled by a sponsor. While DSTs are frequently presented as stable, income-producing alternatives to active property ownership, they are complex, illiquid investments that can carry significant risk. Many DST offerings include substantial upfront commissions, sponsor fees, asset management fees, and other layered costs that can materially reduce investor returns. In some cases, the high fee structure alone may make the investment economically unattractive, particularly when performance does not meet projections.
DSTs are not suitable for every investor, especially elderly individuals who may require liquidity, capital preservation, or flexibility. These products often lock investors in for years with little to no secondary market and no control over refinancing or disposition decisions. Financial professionals recommending DSTs must conduct reasonable due diligence and ensure suitability under industry standards. If a broker or advisor failed to properly disclose risks, fees, or liquidity constraints, investors may have claims through FINRA arbitration. An experienced FINRA arbitration attorney can evaluate whether fiduciary duties were breached and pursue recovery where misconduct or negligence occurred.
Did Your DST Fail?
The following are known DSTs that were offered through Inspired and offered by broker-dealers. The following information was gathered from public sources, including the Securities and Exchange Commission:
- 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 Carson Valley DST
- Inspired Senior Living of Chesterfield DST
- Inspired Senior Living of Cinnaminson DST
- Inspired Senior Living of Creswell DST
- 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 DST
- IHC – Ashbrook DST
- IHC – Candle Light Cove DST
- IHC – Peachtree DST
Free Attorney Consultation
MDF Law is conducting a detailed investigation into allegations of fraud and deceptive sales tactics involving certain Inspire Healthcare sales representatives. Our firm is reviewing potential claims involving fraud, misrepresentation, and improper sales practices. Contact MDF Law today for a confidential consultation to discuss your situation and explore your legal options.