What is Bakhtiari & Harrison investigating on behalf of investors?

Bakhtiari & Harrison investigates investor losses in various high-risk investments, including Blue Owl Capital, Inspired Healthcare Capital Fund, Versity Investments/Crew Enterprises and more.

Can investors recover losses from failed private placement investments?

Yes, in many cases investors can recover losses from failed private placement investments through FINRA arbitration if the product was unsuitably recommended by a broker or financial advisor. Brokerage firms and advisors who recommend private placements are legally required to conduct reasonable due diligence and ensure the product is suitable for the specific investor based on their risk tolerance, investment objectives, and financial situation. If the recommendation was unsuitable, misrepresented, or lacked proper disclosure, investors may have a viable claim regardless of whether the product itself has failed.

What should I do if I lost money in Inspired Healthcare Capital Fund?

If you invested in Inspired Healthcare Capital Fund or any related Inspired Healthcare Capital or Inspired Senior Living offering and have suffered losses or received notice of suspended distributions, you should: (1) gather all investment documents, subscription agreements, and correspondence; (2) do not sign any releases or settlement agreements without consulting an attorney; (3) contact Bakhtiari & Harrison for a free consultation to evaluate your potential claim. The firm is actively investigating these cases and represents investors.

How long do investors have to bring a claim for investment losses?

Under FINRA Rule 12206, claims must be filed within six years of the events giving rise to the dispute. Many underlying state and federal securities laws have shorter limitations periods — some as short as one to three years from the date of discovery of the loss or wrongdoing. For active investigations like Blue Owl Capital or Inspired Healthcare Capital Fund, investors should not delay consulting an attorney, as waiting can permanently bar recovery. Bakhtiari & Harrison offers free consultations and can advise on applicable deadlines for your specific situation.

Non-Traded REIT Attorneys — Bakhtiari & Harrison

Written and reviewed by

Ryan Bakhtiari, Partner — Bakhtiari & Harrison

Admitted: CA | NY | TX | DC | Multiple Federal Courts · Super Lawyers 2005–2026 · Former PIABA President · Former FINRA NAMC Chairman · Last reviewed: May 2026

REIT attorneys at Bakhtiari & Harrison represents investors in fraud and suitability claims in FINRA arbitration nationwide. Non-traded real estate investment trusts — REITs that are not listed on a securities exchange — have been one of the most consistent sources of investor harm in the retail brokerage industry for decades. They combine high broker commissions (typically 7-10% of invested capital), near-total illiquidity, opaque valuations, and systematic misrepresentation of their income-generating capacity. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017 and as President of PIABA. Investor cases are handled on a contingency fee basis — no recovery, no fee.

Non-traded REITs vs. publicly traded REITs

A real estate investment trust (REIT) is a company that owns income-producing real estate. Publicly traded REITs are listed on securities exchanges — investors can buy and sell shares at market prices throughout the trading day, with full price transparency. Non-traded REITs are not listed on any exchange. They raise capital through broker-dealer sales networks, paying commissions of 7-10% of invested capital. Once purchased, they cannot be sold on any exchange — the investor’s only exit options are limited redemption programs (which are typically suspended in periods of financial stress), a secondary market that prices shares at steep discounts, or waiting for a liquidity event that may never occur.

Why non-traded REITs are consistently misrepresented

Inflated initial valuations: non-traded REITs are typically offered at $10 per share regardless of their actual asset value. After paying 7-10% in commissions and offering costs, the net asset value of a share on day one is typically $9.00-$9.30 — but investors are not told this.
Distributions funded by return of capital: non-traded REITs frequently pay distributions that are funded not by investment income but by returning the investor’s own capital — creating the illusion of income while actually depleting the investment.
Illiquidity misrepresentation: brokers routinely describe non-traded REITs as “stable” alternatives to publicly traded REITs without adequately explaining that the stability is illusory — the share price does not fluctuate because there is no liquid market, not because the underlying assets are stable.
Concentration risk: placing a significant portion of an investor’s retirement assets in a single non-traded REIT creates concentration in a single illiquid asset — a suitability violation for most investor profiles.

FINRA regulatory actions against non-traded REIT sellers

FINRA has brought numerous enforcement actions against broker-dealers for non-traded REIT sales practice violations — including Wells Fargo Advisors, LPL Financial, Securities America, and David Lerner Associates, among many others. The pattern of violations is consistent: unsuitable recommendations, misrepresentation of distributions as investment income when they were return of capital, inadequate disclosure of fees and liquidity risks, and failure to supervise.

Frequently asked questions — non-traded REITs

My non-traded REIT suspended its redemption program — what can I do?

A suspended redemption program is a common sign that the REIT is in financial distress and that the underlying assets are not performing as represented. Contact Bakhtiari & Harrison immediately. If the REIT was unsuitably recommended — particularly if it was placed in a retirement account or represented a significant concentration of your portfolio — you may have a viable FINRA arbitration claim against the selling broker-dealer regardless of whether the REIT itself is solvent.

My broker said the distributions were income — but they appear to be return of capital. Is that fraud?

Yes, potentially. When a broker represents that a non-traded REIT’s distributions are generated by investment income when they are actually return of capital, that misrepresentation is directly actionable as securities fraud and a suitability violation. Return-of-capital distributions deplete the investment while creating the illusion of income — and investors who rely on those “distributions” as retirement income are being systematically harmed.

How can I find out what my non-traded REIT shares are actually worth?

Non-traded REITs are required to provide an estimated per-share value — but this may lag significantly behind actual market conditions. Third-party secondary market platforms (such as Broadmark, Central Trade & Transfer, and others) may provide market pricing. Bakhtiari & Harrison can assist with valuation analysis as part of its initial case evaluation.

For a full overview of the firm’s investment product failure practice, visit the Product Failure page.

Contact a non-traded REIT attorney — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys evaluate every potential investor claim at no charge. Investor cases are handled on a contingency fee basis — no recovery, no fee.

Investor cases are handled on a contingency fee basis — no recovery, no fee.

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