The White Law Group Files FINRA Claim Against 1031 Securities, Inc. Involving Inspired Healthcare Capital DST Investments
Longmont, Colorado — [October 20th, 2025] The White Law Group has filed a FINRA arbitration claim on behalf of a Colorado resident against 1031 Securities, Inc. (CRD# 326590), a registered broker-dealer doing business in Colorado and a member of the Financial Industry Regulatory Authority (FINRA).
The claim alleges that the firm made unsuitable investment recommendations in high-risk Delaware Statutory Trust (DST) offerings sponsored by Inspired Healthcare Capital (IHC), including Inspired Senior Living of New Braunfels DST and Osprey Storage DST. The customer is seeking damages between $100,000 and $500,000.
According to the claim, 1031 Securities allegedly failed to conduct adequate due diligence on these investments and recommended them despite their illiquid and speculative nature.
Understanding the Risks of DST Investments
Delaware Statutory Trusts (DSTs) are complex real estate investment structures frequently marketed as 1031 exchange replacement properties for investors seeking tax deferral. While DSTs can offer certain tax benefits, they also come with substantial risks, including:
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Illiquidity – Investors generally cannot sell or redeem their interest prior to the liquidation of the trust.
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Lack of control – Investors have no voting rights or authority over property management or sales decisions.
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High upfront fees – A significant portion of investor capital may go toward commissions and offering expenses rather than the underlying real estate.
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Performance risk – Returns depend on the sponsor’s management and the success of a single property or small group of properties.
These features often make DSTs unsuitable for conservative or income-oriented investors seeking stable, liquid investments.
Inspired Healthcare Capital (IHC) and Distribution Concerns
Inspired Healthcare Capital, the sponsor of the investments at issue, has reportedly failed to pay investor distributions since July 2025, according to investor reports and offering disclosures. This suspension of distributions has raised serious concerns about the liquidity and financial condition of IHC-sponsored programs such as Inspired Senior Living of New Braunfels DST and Osprey Storage DST.
“The failure of these investments to perform as promised has left many investors facing unexpected losses,” said Dax White, managing partner of The White Law Group. “Unfortunately, we continue to see cases where brokerage firms recommend DSTs without adequately explaining the risks or ensuring they are appropriate for the investor’s goals.”
FINRA Arbitration for DST Losses
Brokerage firms like 1031 Securities have a legal responsibility to ensure that investment recommendations are suitable and that they conduct reasonable due diligence on any product they sell. When firms fail in these duties, investors may have the right to pursue claims through FINRA arbitration to recover losses.
The White Law Group is currently investigating potential claims involving Inspired Healthcare Capital DSTs, 1031 exchange investments, and other high-risk alternative products sold by 1031 Securities, Inc.
If you invested in Inspired Healthcare Capital offerings, including Inspired Senior Living of New Braunfels DST or Osprey Storage DST, and suffered investment losses, you may be able to recover damages through a FINRA arbitration claim.
Free Consultation
For a free consultation with a securities attorney, please contact The White Law Group at (888) 637-5510 or visit www.whitesecuritieslaw.com
Last modified: October 20, 2025
