Haselkorn & Thibaut Investigates Potential Claims Against Financial Advisors Who Recommended Inspired Healthcare Capital DST Investments
Recent developments involving Inspired Senior Living Hamilton DST and its sponsor, Inspired Healthcare Capital, have left many investors facing significant losses and halted distributions. As one of the most troubled Delaware Statutory Trust (DST) investments in the senior housing sector, Inspired Senior Living Hamilton DST has become the subject of multiple FINRA arbitration claims and investor investigations.
Understanding Inspired Senior Living Hamilton DS
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Inspired Senior Living Hamilton DST was a Delaware Statutory Trust offering that owned a 195-unit Class A senior housing property in Hamilton, New Jersey. The DST offering launched in early May 2022 and raised more than $56 million in equity from accredited investors through a network of independent broker-dealers and registered investment advisors. Proceeds from the offering, with leverage, were deployed to purchase the senior housing property for $115.3 million.
The property, located approximately one hour from Philadelphia and New York City, was a four-story facility built in 2017 that encompassed independent living, assisted living, and memory care. Situated on 23 acres of land, it consisted of studio, companion, and one- and two-bedroom units with a total of 204 beds.
Inspired Senior Living Hamilton DST offering was structured to generate investor distributions at an annualized rate of 6.25%, making it attractive to income-seeking investors, particularly retirees looking for steady cash flow. However, these promised returns have proven unsustainable, leaving investors with substantial losses.
The Collapse of Inspired Healthcare Capital
Inspired Healthcare Capital (IHC), the sponsor behind Inspired Senior Living Hamilton DST, has experienced a dramatic downfall that has devastated investor portfolios. In July 2025, Inspired suspended all of its investment offerings and terminated investor distributions amid an active United States Securities and Exchange Commission (SEC) investigation.
The situation deteriorated rapidly as the firm shuttered its internal management unit, Volante Senior Living, after its CEO resigned, and transferred operations to an outside operator, Leisure Care. Most troubling for investors, only about 10 to 15 of its 35 senior-living communities are reported to remain financially viable—a troubling performance rate that suggests widespread risk to investors.
This collapse has left thousands of investors, many of whom are retirees depending on these distributions for income, without their expected returns and facing the possibility of total loss of their investments.
Broker Misconduct in Inspired Senior Living Hamilton DST Sales
Recent FINRA arbitration claims have revealed serious concerns about how Inspired Senior Living Hamilton DST and other Inspired Healthcare Capital investments were sold to retail investors. These cases highlight patterns of potential broker misconduct, including:
Unsuitable Investment Recommendations: Many investors were placed in Inspired Senior Living Hamilton DST without proper consideration of their risk tolerance, liquidity needs, or overall financial situation. DST investments are complex, illiquid products that may not be appropriate for conservative investors or those needing access to their funds.
Failure to Conduct Adequate Due Diligence: Financial advisors have a responsibility to thoroughly research investment sponsors and products before recommending them to clients. The rapid deterioration of Inspired Healthcare Capital’s portfolio raises questions about whether proper due diligence was conducted.
Inadequate Risk Disclosure: Investors report that they were not adequately informed about the risks associated with DST investments, including the potential for total loss, lack of liquidity, and dependence on a single sponsor’s management capabilities.
Over-concentration in High-Risk Investments: Some investors were placed in multiple Inspired Healthcare Capital offerings or had significant portions of their portfolios concentrated in similar high-risk alternative investments.
Case Study: David John Funes and Realized Financial
One particularly troubling case involves David John Funes (CRD #5467419), a former broker with Realized Financial who recommended Inspired Senior Living Hamilton DST to clients. Funes has a history of regulatory actions, customer complaints, and criminal charges that should have served as red flags for both investors and supervisory firms.
According to his FINRA BrokerCheck record, David Funes pled guilty to three felonies: Conspiracy to Commit Healthcare Fraud, Illegal Monetary Transaction, and Receipt of a Kickback in Connection with a Federal Health Care Benefit. Despite this criminal history, Funes continued to work as a registered representative and recommend investments to unsuspecting clients.
David Funes was discharged by Realized Financial in January 2023 for failing to disclose a criminal event. Subsequently, in September 2023, FINRA suspended David Funes indefinitely for failure to cooperate with a regulatory investigation. Most recently, Funes was permanently barred by FINRA.
Recent FINRA claims allege losses of $100,000-$500,000 in unsuitable investments in Inspired Senior Living Hamilton DST, demonstrating the significant financial harm that can result from broker misconduct and supervisory failures.
Legal Rights for Inspired Senior Living Hamilton DST Investors
Investors who suffered losses in Inspired Senior Living Hamilton DST may have several legal remedies available, even though the sponsor itself may be unable to provide compensation:
Claims Against Financial Advisors: Investors can pursue FINRA arbitration claims against the brokers who recommended Inspired Senior Living Hamilton DST if those recommendations were unsuitable or made without proper disclosure of risks.
Supervisory Liability: Brokerage firms have an obligation to properly supervise their registered representatives. Firms that failed to detect red flags about problematic brokers or inadequate due diligence on Inspired Healthcare Capital may be held liable for resulting losses.
Suitability Violations: FINRA Rule 2111 requires that investment recommendations be suitable based on the investor’s financial profile, objectives, and risk tolerance. Recommending Inspired Senior Living Hamilton DST to inappropriate investors may constitute a suitability violation.
Failure to Conduct Due Diligence: Broker-dealers must conduct reasonable due diligence on investment products before offering them to clients. The rapid collapse of Inspired Healthcare Capital may indicate that adequate due diligence was not performed.
Red Flags in Inspired Senior Living Hamilton DST Marketing
Several warning signs should have alerted both brokers and investors to the risks associated with Inspired Senior Living Hamilton DST:
- High Promised Returns: The 6.25% annual distribution rate, while attractive, should have prompted questions about sustainability in the challenging senior housing market.
- Rapid Growth: Inspired Healthcare Capital’s aggressive expansion, raising approximately $600 million in 2022 alone, may have indicated overextension and inadequate risk management.
- Concentration Risk: Investors who were placed in multiple Inspired Healthcare Capital offerings faced significant concentration risk that should have been addressed.
- Complex Structure: The DST structure, while offering potential tax benefits, creates additional risks and complexities that may not have been adequately explained to investors.
- Market Challenges: The senior housing sector has faced significant headwinds, including regulatory changes, labor shortages, and the impact of COVID-19, which should have been factored into investment recommendations.
Recovery Strategies for Affected Investors
Despite the collapse of Inspired Healthcare Capital, investors in Inspired Senior Living Hamilton DST may still have viable options for recovering their losses:
FINRA Arbitration: Most brokerage agreements require disputes to be resolved through FINRA’s arbitration process. This can be an effective forum for pursuing claims against brokers and brokerage firms for misconduct related to Inspired Senior Living Hamilton DST recommendations.
Multiple Defendant Strategy: Successful claims often involve pursuing multiple parties, including individual brokers, supervising principals, and the brokerage firm itself.
Documentation Preservation: Investors should preserve all documentation related to their Inspired Senior Living Hamilton DST investment, including marketing materials, account statements, and communications with their financial advisor.
Prompt Action: FINRA arbitration claims are subject to a six-year eligibility rule, making timely action crucial for preserving legal rights.
The Importance of Professional Legal Representation
Pursuing claims related to Inspired Senior Living Hamilton DST losses requires sophisticated understanding of securities law, FINRA rules, and the complexities of DST investments. Key factors in successful representation include:
Securities Law Expertise: Attorneys must understand the intricate regulatory framework governing investment recommendations and broker-dealer supervision.
Industry Knowledge: Familiarity with DST investments, senior housing markets, and alternative investment products is crucial for building effective cases.
FINRA Arbitration Experience: The arbitration process has unique rules and procedures that require specialized experience to navigate effectively.
Resource Capability: Complex securities cases often require expert witnesses, extensive discovery, and significant resources to pursue effectively.
How Haselkorn & Thibaut Can Help Inspired Senior Living Hamilton DST Investors
At Haselkorn & Thibaut, our experienced securities litigation attorneys have extensive experience helping investors recover losses from unsuitable DST investments and alternative investment products. Our firm’s unique background provides significant advantages in pursuing Inspired Senior Living Hamilton DST claims:
Former Defense Attorney Experience: Our founding partners, Jason Haselkorn and Matthew Thibaut, previously represented major financial institutions, giving them insight into how brokerage firms operate and make decisions.
Proven Track Record: With over 50 years of combined experience and a 98% success rate, our firm has successfully recovered millions of dollars for investors nationwide.
DST Investment Expertise: We have handled numerous cases involving DST investments and understand the unique legal and practical challenges these cases present.
Contingency Fee Representation: We work on a contingency fee basis, meaning clients pay no attorney fees unless we achieve a successful recovery.
Nationwide Practice: Our offices in Florida, New York, Arizona, Texas, and North Carolina allow us to represent Inspired Senior Living Hamilton DST investors across the country.
Taking Action on Inspired Senior Living Hamilton DST Losses
If you invested in Inspired Senior Living Hamilton DST and have suffered losses or experienced halted distributions, it’s important to have your case evaluated promptly by experienced securities litigation attorneys. Key considerations include:
Immediate Case Review: Given the six-year limitation period for FINRA claims, prompt evaluation is essential.
Documentation Gathering: Collecting all relevant documents while they’re still available can significantly strengthen your case.
Broker Background Check: Reviewing your financial advisor’s FINRA BrokerCheck record may reveal additional red flags or patterns of misconduct.
Portfolio Analysis: Examining your overall investment portfolio can help identify concentration issues or other suitability concerns.
Conclusion: Seeking Justice for Inspired Senior Living Hamilton DST Investors
The collapse of Inspired Healthcare Capital and the halt of distributions from Inspired Senior Living Hamilton DST represent a significant failure in the alternative investment marketplace. While the sponsor’s financial difficulties may prevent direct recovery from Inspired Healthcare Capital itself, many investors may still have viable claims against the financial advisors and brokerage firms who recommended these investments.
The key to successful recovery often lies in demonstrating that financial advisors failed to meet their obligations regarding suitability, due diligence, and risk disclosure when recommending Inspired Senior Living Hamilton DST. With proper legal representation, many investors may be able to recover significant portions of their losses through FINRA arbitration.
For a free, confidential consultation about your Inspired Senior Living Hamilton DST investment losses, contact Haselkorn & Thibaut at 1-888-885-7162 or visit InvestmentFraudLawyers.com.
Don’t let the collapse of Inspired Healthcare Capital prevent you from exploring all available options for recovery. With experienced legal representation, you may be able to hold the financial professionals who recommended Inspired Senior Living Hamilton DST accountable for their actions and recover compensation for your losses.
