Inspired Senior Living of Augusta DST: Investment Loss Recovery
If you invested in Inspired Senior Living of Augusta DST or other Inspired Healthcare Capital offerings and are now facing losses, you may be entitled to recovery. The White Law Group is investigating potential FINRA arbitration claims on behalf of investors in light of the firm’s recent decision to suspend investment offerings and distributions amid an alleged U.S. Securities and Exchange Commission (SEC) investigation.
August DST Letter to Investors, February 10th, 2026
Inspired Healthcare Capital informed investors in a February 10, 2026 communication that it commenced Chapter 11 proceedings on February 2, 2026. According to the company, the bankruptcy filing is intended to maximize value while it explores strategic alternatives, including a possible sale, restructuring of debt, or other recapitalization efforts. IHC also secured DIP financing to fund operations during the bankruptcy case.
The company disclosed sweeping management changes, replacing prior senior leadership with independent managers and naming M. Benjamin Jones as Chief Restructuring Officer. The letter also confirmed that Luke Lee no longer serves in any role at IHC. Additionally, the company stated it is preserving potential legal claims and evaluating causes of action against potential “wrongdoers,” which may have implications for investors assessing potential claims.
February 2026 Update- Inspired Healthcare Capital Bankruptcy
In February 2026, Inspired Healthcare Capital and more than 160 affiliates filed for Chapter 11 bankruptcy in the Northern District of Texas, reporting estimated liabilities of $1–$10 billion. The filing follows months of suspended distributions, independent management oversight, and SEC scrutiny, and adds further uncertainty for investors regarding asset values and recovery prospects.
January 2026: Inspired Healthcare Capital
In a January 15, 2026 communication to investors and financial advisors, IHC disclosed that independent managers have assumed control of key operating and DST-related entities, a restructuring professional from Ankura Consulting Group has been appointed, and outside restructuring counsel has been retained. As of February 2026, investor distributions remain suspended with no timeline provided for resumption, and no new capital is being raised.
Investor complaints and recovery efforts continue to expand, with many claims focused on alleged misrepresentations, unsuitable recommendations, overconcentration in illiquid private placements, and failures by broker-dealers to supervise financial advisors who recommended IHC investments.
(For a comprehensive overview of litigation activity, restructuring developments, and investor recovery options, see our main Inspired Healthcare Capital Lawsuit Update.)
July 2025 SEC Review
- 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
These changes may impact the performance, liquidity, and overall stability of investments in Inspired Senior Living of Augusta DST.
About the Offering – Form D Filing
According to a Form D filed with the SEC, Inspired Senior Living of Augusta DST sought to raise $20,906,104 from investors in 2022. The offering was structured as a Delaware Statutory Trust (DST) and marketed primarily to 1031 exchange investors seeking passive income and potential tax deferral benefits.
- Minimum investment: $50,000
- Estimated sales commissions: $1,724,753 (including $1,254,366 in selling commissions and a dealer management fee of $470,387)
- Managing broker-dealer: American Alternative Capital, LLC (CRD#: 309956)
- Use of proceeds: $355,404 for organizational and offering expenses, $313,592 for marketing expenses, an acquisition fee of $1,228,000, and estimated bridge financing costs of $393,280
Why Are Investors Filing DST Lawsuits?
The White Law Group has received calls from Inspired Senior Living of Augusta DST investors reporting:
- Suspended distributions with no advance warning
- Failure to disclose high risks, fees, and potential conflicts of interest
- Inadequate due diligence by their broker-dealer
- Omissions regarding the sponsor’s broader financial issues
The combination of SEC scrutiny, management upheaval, and operational changes has raised doubts about the long-term stability and value of the property.
Key Risks of DST Investments like Inspired Senior Living of Augusta
- Illiquidity: Interests cannot be resold until the property itself is sold.
- High Fees: Upfront commissions and costs (often 7–10%) reduce investor capital.
- No Investor Control: Management and sale timing decisions rest solely with the sponsor.
- Sponsor Conflicts: Sponsors may continue earning fees despite poor performance.
Broker Responsibility & Potential Misconduct
Brokers selling DST investments like Inspired Senior Living of Augusta must:
- Ensure suitability based on the client’s financial situation
- Disclose all risks, conflicts, and fees
- Conduct a reasonable investigation of the sponsor and the offering
If a financial advisor fails in these duties, the brokerage firm may be liable for investor losses.
How to Recover DST Investment Losses
Most DST-related investor claims — including those involving Inspired Senior Living of Augusta DST — are pursued through FINRA arbitration, not traditional lawsuits.
The White Law Group has successfully recovered millions for investors in unsuitable investment cases nationwide.
FAQs: Inspired Senior Living of Augusta
What are the risks of investing in a DST?
DSTs offer no liquidity, limited control, and cannot raise new capital after the offering—exposing investors to risks such as property damage, market shifts, or decreased rental income.
How do I know if my broker violated FINRA rules?
If your advisor didn’t fully disclose the risks or recommended this DST without considering your financial profile, it may constitute a violation of suitability requirements.
What is the status of Inspired Healthcare Capital in 2026?
New offerings and distributions remain suspended, and in February 2026, Inspired Healthcare Capital and more than 160 affiliates filed for Chapter 11 bankruptcy in the Northern District of Texas, reporting estimated liabilities of $1–$10 billion.
