IHC Candle Light Cove DST: Securities Investigation

The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended IHC Candle Light Cove DST to investors.

What is IHC Candle Light Cove DST?

Inspired Healthcare Capital LLC reportedly specializes in senior housing investments. IHC is focused on investing in Independent Living, Assisted Living & Memory Care Facilities. IHC raises equity through broker-dealers and financial advisors. The company reportedly has over $500 million of assets under management as of March 2022.

IHC Candle Light Cove DST, a private placement Delaware Statutory Trust (DST) investment, is sponsored by Inspired Healthcare Capital. The company reportedly filed a form D to raise capital from investors in 2021, and the total offering amount was purportedly $32,748,352.

According to the form D, 10% of the offering amount was estimated for Selling commissions, including a Managing Broker Dealer Fee, a Non-Accounting Marketing & Due Diligence allowance and a Wholesaling Fee.

Illiquid Investments

Investing in private placement Delaware Statutory Trusts (DSTs) carries several risks, including limited liquidity, as these investments are typically long-term and difficult to sell. There is also the potential for loss of principal due to market volatility or poor performance of the underlying real estate assets. Additionally, DSTs may have limited control for investors, as management decisions are often in the hands of a trustee, and tax benefits could be impacted if the investment fails to meet certain regulatory requirements.

Regulation Best Interest

Under the “Regulation best interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment.  If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.

If your advisor unsuitably recommended a 1031 DST offering and you lost money, the securities attorneys at The White Law Group may be able to file a complaint for you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Class Action vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option  than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Free Consultation with a Securities Attorney

If you are concerned about your investment in IHC Candle Light Cove DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.