Inspired Senior Living of Lake Orion DST Investment Losses?
February 2026 Update: Inspired Healthcare Capital Chapter 11 Filing
Inspired Healthcare Capital’s ongoing financial challenges culminated in a Chapter 11 bankruptcy filing in February 2026, covering more than 160 affiliated entities in the Northern District of Texas. The company reported estimated liabilities of $1–$10 billion, following months of suspended distributions and the appointment of independent managers and restructuring professionals.
Prior disclosures in January 2026 revealed that operational control had shifted to independent management, with Ankura Consulting Group engaged to assist with restructuring efforts. As of February 2026, distributions to investors remain halted, no new capital is being accepted, and uncertainty continues regarding asset values, liquidity, and potential recovery for investors.
(For a comprehensive overview of litigation activity, restructuring developments, and investor recovery options, see our main Inspired Healthcare Capital Lawsuit Update.)
July 2025: IHC Suspends Distributions Indefinitely
- 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
What is Inspired Senior Living of Lake Orion DST?
Inspired Senior Living of Lake Orion DST is a real estate investment structured as a Delaware Statutory Trust (DST) and sponsored by Inspired Healthcare Capital, LLC. The DST was reportedly offered as part of a 1031 exchange strategy and aimed to raise over $27 million from investors, according to SEC filings.
Understanding the Drawbacks of 1031 DST Investments
While 1031 DSTs can provide tax benefits and passive income, they often carry significant disadvantages:
· No access to additional capital – If unexpected expenses arise, the trust has no way to raise funds.
· Lack of investor control – Management decisions are made by the sponsor, not the investors.
· Illiquidity – Investors may not be able to sell their interests before the trust’s assets are sold.
These risks make DSTs unsuitable for many retail investors, particularly those needing flexibility or capital preservation.
Were You Given a Suitable Investment Recommendation?
FINRA-registered brokers have a duty to conduct due diligence on investment products and to ensure that recommendations are suitable for their clients. This includes evaluating the investor’s financial situation, risk tolerance, and objectives.
If your financial advisor recommended this DST without fully disclosing the risks or confirming suitability, the firm may be liable for your losses.
How to Recover Losses Through FINRA Arbitration
If you were misled or sold an unsuitable investment, FINRA Dispute Resolution offers a legal pathway to recover damages. Arbitration is generally faster and less expensive than traditional litigation. The White Law Group has extensive experience handling FINRA arbitration claims on behalf of investors nationwide. We work on a contingency basis—meaning we don’t get paid unless you recover money.
Free Legal Consultation with a Securities Attorney
If you’re concerned about your investment in Inspired Senior Living of Lake Orion DST, call The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
We represent investors across the U.S. from our offices in Chicago, Illinois and Seattle, Washington. To learn more, visit whitesecuritieslaw.com.
Frequently Asked Questions – Inspired Senior Living Lake Orion
Why are DSTs considered high-risk investments?
DSTs lack liquidity, provide limited investor control, and cannot raise additional capital once the offering closes—leaving investors vulnerable to issues like property damage, changing market conditions, or reduced rental income.
How can I tell if my broker violated FINRA rules?
If your broker failed to fully explain the risks or recommended the DST without evaluating your individual financial situation, it may be a breach of FINRA’s suitability standards.
What does it cost to pursue a FINRA arbitration claim?
Most securities law firms, including The White Law Group, work on a contingency basis, meaning you generally owe no fees unless they recover funds for you.
What is the 2026 status of Inspired Senior Living of Lake Orion DST?
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.
