The legal filing states that IHC promoted itself as managing more than $1.5 billion in assets, largely funded through Regulation D private placements marketed by broker-dealers, including Emerson Equity. These offerings were presented to investors as relatively low-risk because of their focus on assisted living and memory care real estate. However, IHC’s abrupt operational shutdown and financial troubles suggest significant mismanagement.
In July 2025, IHC closed down its in-house management arm, Volante Senior Living, and transitioned control of its properties to outside operators. Shortly thereafter, Emerson Equity acknowledged in a communication to investors that IHC had not provided sufficient financial transparency for several of its Delaware Statutory Trust (DST) offerings. This led Emerson to pursue legal remedies. By August, a related entity, Emerson Equity Bridge Fund I, filed a lawsuit against IHC and its CEO, Luke Lee, alleging that a $1.5 million loan—personally backed by Lee—was based on misrepresentations. The suit claims that Lee failed to disclose over $200 million in existing personal guarantees, despite being in severe financial distress at the time the loan was executed.
The arbitration further accuses Emerson Equity of failing to fulfill its Regulation Best Interest (Reg BI) obligations and fiduciary responsibilities by conducting insufficient due diligence and placing firm interests ahead of investor protection. Investors are now left in limbo, with payments frozen and access to their original investment uncertain.
Legal action is ongoing, and investors who purchased IHC products are urged to review their accounts and seek legal advice if they suspect they received misleading information.
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened.
Investors interested in a free legal consultation regarding IHC-related losses can contact Adam Gana at (646) 404-0000 or by email at AGana@GanaLLP.com. Additional information is available at the firm’s website: www.ganalawfirm.com.