Spring Hills Holdings Complaints & Lawsuit Investigation
The White Law Group investigates Spring Hills Holdings lawsuit and recovery options for investors.
The White Law Group is investigating potential complaints on behalf of investors who purchased interests in Spring Hills Holdings, LLC, a Reg D private placement tied to senior living and assisted care facilities. If you invested in Spring Hills Holdings and have concerns about how it was recommended to you, contact our FINRA arbitration attorneys for a free consultation.
What Is Spring Hills Holdings, LLC?
Spring Hills Holdings, LLC is a Delaware limited liability company formed in 2017 and based in Edison, New Jersey, purportedly managed by Spring Hills Senior Communities. The company was organized to invest in senior care and assisted living properties. According to its SEC Form D filing, the offering targeted $100 million and had raised roughly $61.9 million from 741 investors as of its most recent amendment.
Offering Terms and Broker-Dealers Involved
Spring Hills Holdings was offered under Rule 506(b) of Regulation D, with a $35,000 minimum investment. Sales commissions were estimated at roughly $6.8 million on the full offering. The Form D lists the following broker-dealers as recipients of sales compensation:
- Cabot Lodge Securities, LLC
- Moloney Securities Co., Inc.
- Purshe Kaplan Sterling Investments
- U.S. Sterling Securities, Inc.
- Center Street Securities, Inc.
- Landolt Securities, Inc.
- Chalice Capital Partners, LLC
- NI Advisors
- Independence Capital Co., Inc.
- World Equity Group, Inc.
- Vestech Securities, Inc.
- Calton & Associates, Inc.
- Park City Capital, Inc.
- Ausdal Financial Partners, Inc.
- Whitehall-Parker Securities, Inc.
- Titan Securities
- Great Point Capital LLC
- KCD Financial, Inc.
- Gramercy Securities, Inc.
- Equifinancial LLC
- Western International Securities, Inc.
- Zermatt Securities, Inc.
- International Assets Advisory, LLC
- Oak Tree Securities, Inc.
Whistleblower Lawsuit Tied to Spring Hills Sales Practices
A former compliance officer at Purshe Kaplan Sterling Investments, one of the firms listed above, filed a Dodd-Frank whistleblower lawsuit alleging she was terminated shortly after contacting FINRA about concerns with the firm’s alternative investment business. According to reporting by InvestmentNews, the complaint specifically names Spring Hills Holdings as one of the investments she flagged internally before it was approved for sale anyway. Investors who bought Spring Hills Holdings through Purshe Kaplan Sterling during this period may want to review whether their broker adequately disclosed the risks involved.
Spring Hills Holdings II
Spring Hills Holdings II, LLC is a related but separate Delaware entity, formed in 2020 with a $200 million target offering and a $44,650 minimum investment. As of its most recent Form D amendment, it had raised about $7.6 million from 66 investors. Several of the same firms that sold the original Spring Hills Holdings also sold Spring Hills Holdings II, along with additional firms including Alexander Capital, L.P., Multiple Financial Services, Inc., Kingswood Capital Partners, LLC, Benchmark Investments, LLC, and Emerson Equity LLC. If you invested in either Spring Hills Holdings or Spring Hills Holdings II, the same recovery options generally apply.
Broker Due Diligence Obligations
Any firm that recommended Spring Hills Holdings or Spring Hills Holdings II had an independent duty to investigate the offering, not just rely on the sponsor’s own materials. That includes verifying the manager’s financial condition and track record, and confirming the investment was suitable for each investor’s net worth, income, and liquidity needs.
Risks of Private Placement Investments
Interests in Spring Hills Holdings and Spring Hills Holdings II are illiquid and unregistered, with no public market and no independent valuation of the underlying senior care properties. Any distribution is set at the manager’s discretion, not guaranteed, and can be reduced or suspended if the underlying facilities underperform.
Recovering Investment Losses
If Spring Hills Holdings or Spring Hills Holdings II wasn’t a suitable investment for your financial situation, or the risks weren’t fully disclosed before you invested, you may be able to recover your losses through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud attorneys with offices in Chicago and Seattle. If you invested in Spring Hills Holdings or Spring Hills Holdings II and have questions about your options, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I file a claim to recover money invested in Spring Hills Holdings?
Most investors bought through one of the broker-dealers listed above. Because most brokerage account agreements typically include a pre-dispute arbitration clause, claims against that firm are usually filed and resolved through FINRA arbitration rather than a courtroom lawsuit, and arbitration can still result in a monetary recovery.
2. Why is Spring Hills Holdings considered a risky investment?
As a Reg D private placement, it’s an illiquid, unregistered security with no secondary market, so investors generally can’t sell before the sponsor allows it. Returns depend entirely on how the underlying senior care properties perform, not a fixed or guaranteed rate.
3. Can my brokerage firm be held responsible for losses, even if it didn’t manage Spring Hills Holdings directly?
Yes. Broker-dealers are required to independently vet any offering they sell and confirm it’s suitable for each investor before recommending it. A firm that skipped that step, or ignored internal warnings about its alternative investment sales practices, can be liable for failing to supervise.
