Investor Alert: Inspired Senior Living of Carson Valley DST Lawsuit Investigation
The White Law Group is investigating potential FINRA arbitration claims involving broker-dealers who may have unsuitably recommended Inspired Senior Living of Carson Valley DST to investors.
What is Inspired Senior Living of Carson Valley DST?
Inspired Senior Living of Carson Valley DST is a private placement offering structured as a Delaware Statutory Trust (DST), sponsored by Inspired Healthcare Capital. According to filings with the SEC, the sponsor sought to raise $18,899,833 from accredited investors in 2021.
Inspired Healthcare Capital focuses on senior housing investments, including Independent Living (IL), Assisted Living (AL), and Memory Care (MC) facilities. The firm reportedly raises equity through broker-dealers and financial advisors, and had over $500 million in assets under management as of March 2022.
The Form D filing indicates that 10% of the offering was earmarked for selling commissions, including fees for the managing broker-dealer, wholesaling, and marketing and due diligence expenses.
Risks of DST Investments
Delaware Statutory Trusts offer potential tax benefits for investors pursuing 1031 exchanges, but they also come with significant risks:
- Illiquidity: DSTs are not traded on public exchanges and are difficult to sell or exit early.
- Principal Risk: The underlying real estate may underperform, reducing returns or leading to losses.
- No Investor Control: Investors have no authority over operational or sale decisions.
- Tax Consequences: Failure to comply with IRS regulations may jeopardize the 1031 exchange benefits.
Regulation Best Interest and Broker Liability
Under Regulation Best Interest (Reg BI), brokers must perform adequate due diligence and ensure that investment recommendations align with a client’s risk profile and goals. If your financial advisor failed to properly assess Inspired Senior Living of Carson Valley DST before recommending it, you may be eligible to pursue a FINRA arbitration claim to recover your losses.
FINRA Arbitration vs. Class Action
For investors with substantial losses—typically over $100,000—individual FINRA arbitration is usually a better option than joining a class action. Arbitration allows for a personalized case and potentially faster resolution.
Free Legal Consultation for Investors
If you are concerned about your investment in Inspired Senior Living of Carson Valley DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation. Our firm represents investors in FINRA arbitration nationwide, with offices in Chicago, Illinois and Seattle, Washington.
Frequently Asked Questions (FAQs) – Inspired Senior Living of Carson Valley
- Is this DST a safe investment?
This DST may not be appropriate for all investors due to its illiquid nature, lack of diversification, and high commissions. It is only intended for accredited investors who understand the risks.
- Can I sue my broker for recommending this DST?
Yes. If your broker failed to explain the risks or conduct proper due diligence, you may be able to file a FINRA arbitration claim to recover your losses.
- What are the downsides of investing in DSTs like this?
DSTs are illiquid, carry concentration risk, and offer no investor control. If the property underperforms or lease agreements fall through, investors could lose money.
Last modified: July 28, 2025
