Inspired Senior Living of Arlington Heights DST Lawsuit Investigation by National Securities Fraud Attorneys, The White Law Group
Updated August 2025 — The White Law Group is investigating potential claims on behalf of investors in Inspired Senior Living of Arlington Heights DST, a Delaware Statutory Trust (DST) sponsored by Inspired Healthcare Capital.
In July 2025, Inspired Healthcare Capital announced:
- Suspension of new investment offerings
- Halted distributions to investors
- Closure of its management arm, Volante Senior Living following the CEO’s resignation
- Transfer of property operations to third-party managers
The sponsor also confirmed it is under an active U.S. Securities and Exchange Commission (SEC) review. These events have heightened concerns for investors — particularly retirees relying on monthly DST distributions for income.
What is Inspired Senior Living of Arlington Heights DST?
Inspired Senior Living of Arlington Heights DST is a private placement investment structured as a Delaware Statutory Trust (DST), reportedly sponsored by Inspired Healthcare Capital. According to a Form D filed with the SEC in 2021, the company sought to raise $12,911,282 from accredited investors.
Inspired Healthcare Capital LLC focuses on senior housing investments, such as Independent Living, Assisted Living, and Memory Care communities. The sponsor reportedly had over $500 million in assets under management as of March 2022 and raises capital through broker-dealers and financial advisors.
The Reg D filing noted that approximately 10% of the offering was earmarked for selling commissions, including a managing broker-dealer fee, due diligence allowance, and wholesaling fee.
Risks of DST Investments
Although DSTs may offer potential tax deferral benefits through 1031 exchanges, they come with serious risks:
- Illiquidity: These private placements are not traded on public markets and can be difficult to exit.
- Loss of Principal: Poor property performance or market volatility may lead to financial loss.
- Limited Control: Investors generally have no voting rights; key decisions are made by the sponsor or trustee.
- Tax Risks: If the investment does not comply with IRS rules, the 1031 exchange benefits may be disqualified.
Broker Due Diligence & Liability
Broker-dealers are obligated under Regulation Best Interest (Reg BI) to conduct reasonable due diligence before recommending investments. If your financial advisor recommended Inspired Senior Living of Arlington Heights DST without evaluating its risks or your financial goals, you may be eligible to recover losses through a FINRA arbitration claim.
Class Action vs. FINRA Arbitration
While class actions can benefit groups of investors with small claims, an individual FINRA arbitration is usually more effective for investors who suffered significant losses—typically $100,000 or more. These claims allow for a personalized review of your advisor’s conduct.
Help for Investors – Inspired Senior Living of Arlington Heights
If you have concerns about your investment in Inspired Senior Living of Arlington Heights DST, call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation. We represent investors nationwide from our offices in Chicago, Illinois and Seattle, Washington. https://whitesecuritieslaw.com/
Frequently Asked Questions (FAQs)
- Is Inspired Senior Living of Arlington Heights DST a safe 1031 exchange option?
This DST offering may not be safe for all investors due to its illiquid nature, high commissions, and limited control. It is only suitable for accredited investors who fully understand the risks involved in private real estate placements.
- Can I sue my broker for recommending Inspired Senior Living of Arlington Heights DST?
If your broker misrepresented the risks or failed to conduct adequate due diligence before recommending this DST, you may have grounds to file a FINRA arbitration claim to recover your investment losses.
- What are the risks of investing in a DST like Inspired Senior Living of Arlington Heights?
Risks include lack of liquidity, potential loss of principal, and no investor control over property decisions. DST investments also depend on real estate market performance and can result in tax complications if mismanaged.
4. What is the status of Inspired Senior Living of Arlington Heights DST in 2025?
The sponsor suspended new offerings and distributions in July 2025, is under SEC review, and transferred management to third parties.
Last modified: August 15, 2025
