StHealth Capital Investment Corp. BDC: Investor Lawsuit

Investigating Broker Misconduct Involving StHealth Capital Investment Corp.

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended StHealth Capital Investment Corp., formerly known as First Capital Investment Corp., to retail investors.

If you have suffered investment losses in StHealth Capital Investment Corp., contact our securities attorneys at (888) 637-5510 for a free consultation about potential FINRA arbitration claims.

SEC Charges: StHealth Capital Investment Corp. & Derek Taller at Center of $22 Million Fraud Scheme

In May 2025, the Securities and Exchange Commission (SEC) filed a civil complaint against Derek Taller, former adviser to StHealth Capital Investment Corp., alleging that he engaged in persistent and egregious fraudulent conduct.

According to the SEC’s allegations:

• Taller acted as principal officer and adviser to StHealth Capital and its affiliated fund, Vision BioBanc Holdings LLC, from 2018 to 2024.

• In 2020, Taller acquired an undisclosed personal stake in a startup, and then caused both StHealth and Vision BioBanc to loan the company $2 million, in violation of federal securities laws.

• He later directed more than $21 million in additional loans to that company and its affiliates without disclosing his interest or obtaining required SEC approval.

• Taller also allegedly misappropriated $500,000 from investors for personal use.

The SEC’s charges include violations of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940.

The Commission is seeking permanent injunctions, disgorgement, civil penalties, and a bar preventing Taller from serving as a public company officer or director.

What is StHealth Capital Investment Corp.?

StHealth Capital Investment Corp. is a non-traded Business Development Company (BDC) that raised capital from investors between 2015 and 2019. The company:

• Invested about $9.6 million in nine portfolio companies (as of September 2019)

• Raised gross proceeds of $5.7 million through stock offerings

• Sold shares at an average price of $1.88 per share

Its advisor, StHealth Capital Partners LLC, had no prior experience managing a BDC or registered investment company (RIC), a significant red flag for due diligence.

Risks of Investing in StHealth Capital Investment Corp.

According to its prospectus, investors faced numerous risks, including:

• No public market: The shares were not listed on any exchange, making them extremely illiquid.

• No guaranteed liquidity event: There was no obligation for the company to pursue a sale or IPO.

• Potentially misleading NAV: The company’s reported value could fluctuate dramatically, especially without independent oversight.

• Distributions potentially funded by offering proceeds, not profits

• Investor dilution from additional share issuance

• Conflicts of interest, poor transparency, and limited operating history

These red flags, combined with the SEC’s recent allegations, raise serious questions about how this product was marketed to retail investors.

The Broader Risks of Non-Traded BDCs

Non-traded BDCs, while intended to provide access to private credit markets, often carry high fees, limited liquidity, and complex structures. Like non-traded REITs, they may:

• Charge high commissions (often up to 10% combined)

• Lack transparency

• Be unsuitable for conservative investors or retirees

BDC Sales & Performance Declined Sharply in 2020

Sales of non-traded BDCs dropped significantly in 2020, with just $362.3 million sold, the lowest since the asset class began. Many non-traded BDCs failed to deliver promised returns and protection from volatility, especially during the COVID-19 pandemic.

FINRA has labeled these products an “ongoing concern,” warning that brokerage firms must ensure suitability for each investor.

Did Your Advisor Misrepresent the Risks?

Financial professionals have a duty to:

• Perform adequate due diligence on alternative investments like StHealth Capital Investment Corp.

• Only recommend investments that align with a client’s risk tolerance, investment goals, income, and experience

If your financial advisor failed to meet these standards, and you lost money, you may be eligible to file a FINRA arbitration claim to recover your losses.

Contact The White Law Group – National Securities Arbitration Law Firm

The White Law Group is a national securities fraud law firm representing investors across the country in claims against financial advisors and brokerage firms.

If you invested in StHealth Capital Investment Corp. (formerly First Capital Investment Corp.) and have concerns about misrepresentation or loss of capital, call us today at (888) 637-5510 or visit www.whitesecuritieslaw.com.

We have offices in Chicago, IL and Seattle, WA, and represent investors in all 50 states.