We are currently representing investors recommended DST investments by Emerson broker Ryan Finch.
Finch recommended a number of IHC (Inspired Healthcare) DSTs (Delaware Statutory Trusts). Investments include Inspired Senior Living at Eatonton, Carson Valley and San Marcos, along with Emerson Equity Bridge Fund. All are retailed by Finch and Emerson Equity. As such, Finch and Emerson Equity had an obligation to conduct a reasonable due diligence investigation into IHC. We are investigating whether such reasonable investigation should have discovered the widespread fraud at IHC.
Inspired Healthcare Capital sent investors a letter stating that it is suspending distributions. This is likely due to a fraud of it and its executives. Plaintiffs in that prior suit alleged that IHC and executives misrepresented their financial condition, and guaranteeing leverage, in connection with seeking a loan.
Securities brokerage firms, like Emerson, have a duty to conduct reasonable due diligence for the investments that they sell. Emerson failed to discover such wrongdoing despite the widespread nature of the fraud.
We represent investors. Please contact us if you have information or wish to speak to an attorney about this issue.
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