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Written by The White Law Group• April 7, 2025• 5:54 pm• Blog, Investment Loss Recovery

StHealth Capital Investment Corp. BDC: Investor Lawsuit

StHealth Capital Investment Corp. BDC Securities Investigation Investigating Potential Claims involving StHealth Capital Investment Corp. The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended StHealth Capital Investment Corp. to investors. If you are concerned about this investment, the securities attorneys of The White Law Group may be able to help you. StHealth Capital Investment Corporation (formerly known as First Capital Investment Corp.) seeks to invests in private U.S. small- and middle-market companies. The BDC invested approximately $9.6 million in nine portfolio companies, as of September 2019. From February to November 2019, the company issued 3 million shares of its common stock and received gross proceeds of approximately $5.7 million for an average share price of $1.88. Risks of Investing in STHealth Capital Investment Corp. According to its prospectus, there is a very long list risk factors for investing in this particular Business Development Company (BDC). Here are just a few: The Advisor has no prior experience managing a BDC or a RIC. The Company’s shares will not be listed on an exchange or quoted through a quotation system for the foreseeable future, if ever. Therefore, if Shareholders purchase shares in securities or share offerings by the Company, it is unlikely that they will be able to sell them and, if they are able to do so, it is unlikely that they will receive a full return of their invested capital. The Company is not obligated to complete a liquidity event by a specified date; therefore, it will be difficult for an investor to sell his or her shares. The net asset value of the Company’s common stock may fluctuate significantly. The Company has a limited operating history. An investor may not have the opportunity to evaluate historical data or assess investments prior to purchasing its shares. The Company may be unable to invest a significant portion of the net proceeds of its offering on acceptable terms in an acceptable timeframe. The Company may pay distributions from offering proceeds, borrowings or the sale of assets to the extent its cash flows from operations, net investment income or earnings are not sufficient to fund declared distributions. A Shareholder’s interest in the Company will be diluted if it issues additional shares, which could reduce the overall value of an investment in the Company. Risks of investing in Business Development Companies (BDCs). BDCs were created by the U.S. Congress to stimulate investments in privately owned American companies that may have limited access to debt and equity capital. Non-traded BDCs offer retail investors access to private debt, an asset that typically has only been available to high-net-worth and institutional investors. By investing in a non-traded BDC, individuals are able to pool their capital to invest in private American companies. For more information on BDCs, please see: BDCs – the good, the bad, and the UGLY Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity. BDC Sales & Performance took a Dive in 2020 Unfortunately for investors, sales of nontraded BDCs hit new lows in 2020 and also had poor performance due to COVID-19’s negative effect on returns, according to a report by Robert a Stanger & Co. Broker-dealers reportedly sold just $362.3 million in nontraded BDCs last year, the least since 2010, which was the year after the first product was launched, according to Robert A. Stanger & Co. Inc. Broker-dealers have sold more than $22.6 billion of nontraded BDCs since 2009. The brokers or advisors usually charge a 7% commission and the firm 1%, which translates into a total of $1.8 billion in commissions over that time, according to Investment News. Many of these non-traded BDCs were promised to provide steady growth, and invulnerability from volatile markets, which has not happened. According to the Wall Street Journal, FINRA’s Vice President for Corporate Financing has said these products are an “ongoing concern” for the regulator and that “firms must ensure they are suitable for an investor’s risk profile and investment strategy.” Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim. Potential Lawsuits to Recover Financial Losses If you are concerned about an investment in StHealth Capital Investment Corp. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a consultation. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://whitesecuritieslaw.com. » StHealth Capital Investment Corp. BDC attorney, StHealth Capital Investment Corp. BDC current value, StHealth Capital Investment Corp. BDC distributions, StHealth Capital Investment Corp. BDC dividends, StHealth Capital Investment Corp. BDC investigation, StHealth Capital Investment Corp. BDC investor relations, StHealth Capital Investment Corp. BDC lawsuit, StHealth Capital Investment Corp. BDC lawyer, StHealth Capital Investment Corp. BDC litigation, StHealth Capital Investment Corp. BDC redemptions, StHealth Capital Investment Corp. BDC risks,StHealth Capital Investment Corp. BDC secondary market, StHealth Capital Investment Corp. BDC share price , First Capital Investment Corp. BDC, featured by top securities fraud attorneys, the White Law Group
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Investigating Broker Misconduct Involving StHealth Capital Investment Corp.

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended StHealth Capital Investment Corp., formerly known as First Capital Investment Corp., to retail investors.

Table of Contents

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  • Investigating Broker Misconduct Involving StHealth Capital Investment Corp.
  • SEC Charges: StHealth Capital Investment Corp. & Derek Taller at Center of $22 Million Fraud Scheme
  • What is StHealth Capital Investment Corp.?
  • Risks of Investing in StHealth Capital Investment Corp.
  • The Broader Risks of Non-Traded BDCs
    • BDC Sales & Performance Declined Sharply in 2020
  • Did Your Advisor Misrepresent the Risks?
  • Contact The White Law Group – National Securities Arbitration Law Firm

If you have suffered investment losses in StHealth Capital Investment Corp., contact our securities attorneys at (888) 637-5510 for a free consultation about potential FINRA arbitration claims.


SEC Charges: StHealth Capital Investment Corp. & Derek Taller at Center of $22 Million Fraud Scheme

In May 2025, the Securities and Exchange Commission (SEC) filed a civil complaint against Derek Taller, former adviser to StHealth Capital Investment Corp., alleging that he engaged in persistent and egregious fraudulent conduct.

According to the SEC’s allegations:

  • Taller acted as principal officer and adviser to StHealth Capital and its affiliated fund, Vision BioBanc Holdings LLC, from 2018 to 2024.

  • In 2020, Taller acquired an undisclosed personal stake in a startup, and then caused both StHealth and Vision BioBanc to loan the company $2 million, in violation of federal securities laws.

  • He later directed more than $21 million in additional loans to that company and its affiliates without disclosing his interest or obtaining required SEC approval.

  • Taller also allegedly misappropriated $500,000 from investors for personal use.

The SEC’s charges include violations of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940.

The Commission is seeking permanent injunctions, disgorgement, civil penalties, and a bar preventing Taller from serving as a public company officer or director.


What is StHealth Capital Investment Corp.?

StHealth Capital Investment Corp. is a non-traded Business Development Company (BDC) that raised capital from investors between 2015 and 2019. The company:

  • Invested about $9.6 million in nine portfolio companies (as of September 2019)

  • Raised gross proceeds of $5.7 million through stock offerings

  • Sold shares at an average price of $1.88 per share

Its advisor, StHealth Capital Partners LLC, had no prior experience managing a BDC or registered investment company (RIC), a significant red flag for due diligence.


Risks of Investing in StHealth Capital Investment Corp.

According to its prospectus, investors faced numerous risks, including:

  • No public market: The shares were not listed on any exchange, making them extremely illiquid.

  • No guaranteed liquidity event: There was no obligation for the company to pursue a sale or IPO.

  • Potentially misleading NAV: The company’s reported value could fluctuate dramatically, especially without independent oversight.

  • Distributions potentially funded by offering proceeds, not profits

  • Investor dilution from additional share issuance

  • Conflicts of interest, poor transparency, and limited operating history

These red flags, combined with the SEC’s recent allegations, raise serious questions about how this product was marketed to retail investors.


The Broader Risks of Non-Traded BDCs

Non-traded BDCs, while intended to provide access to private credit markets, often carry high fees, limited liquidity, and complex structures. Like non-traded REITs, they may:

  • Charge high commissions (often up to 10% combined)

  • Lack transparency

  • Be unsuitable for conservative investors or retirees

BDC Sales & Performance Declined Sharply in 2020

Sales of non-traded BDCs dropped significantly in 2020, with just $362.3 million sold, the lowest since the asset class began. Many non-traded BDCs failed to deliver promised returns and protection from volatility, especially during the COVID-19 pandemic.

FINRA has labeled these products an “ongoing concern,” warning that brokerage firms must ensure suitability for each investor.


Did Your Advisor Misrepresent the Risks?

Financial professionals have a duty to:

  • Perform adequate due diligence on alternative investments like StHealth Capital Investment Corp.

  • Only recommend investments that align with a client’s risk tolerance, investment goals, income, and experience

If your financial advisor failed to meet these standards, and you lost money, you may be eligible to file a FINRA arbitration claim to recover your losses.


Contact The White Law Group – National Securities Arbitration Law Firm

The White Law Group is a national securities fraud law firm representing investors across the country in claims against financial advisors and brokerage firms.

If you invested in StHealth Capital Investment Corp. (formerly First Capital Investment Corp.) and have concerns about misrepresentation or loss of capital, call us today at (888) 637-5510 or visit www.whitesecuritieslaw.com.

We have offices in Chicago, IL and Seattle, WA, and represent investors in all 50 states.

Tags: First Capital Investment Corp. BDC, StHealth Capital Investment Corp.  BDC attorney, StHealth Capital Investment Corp.  BDC current value, StHealth Capital Investment Corp.  BDC distributions, StHealth Capital Investment Corp.  BDC dividends, StHealth Capital Investment Corp.  BDC investigation, StHealth Capital Investment Corp.  BDC investor relations, StHealth Capital Investment Corp.  BDC lawsuit, StHealth Capital Investment Corp.  BDC lawyer, StHealth Capital Investment Corp.  BDC litigation, StHealth Capital Investment Corp.  BDC redemptions, StHealth Capital Investment Corp.  BDC risks, StHealth Capital Investment Corp.  BDC secondary market, StHealth Capital Investment Corp.  BDC share price Last modified: May 28, 2025
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