Soreide Law Group was recently contacted by investors who experienced financial losses due to the alleged recommendation of Inspired DSTs by their broker, JOSEPH KOCSIS (JOE KOCSIS) currently with QUINCY WELLS CAPITAL, LLC of Chicago, Illinois since 5/1/2026. Before that Kocsis was registered as a broker with GREAT POINT CAPITAL LLC of Chicago, Illinois, from 01/04/2019 - 05/01/2026.
Delaware Statutory Trusts (DST) are an option for 1031 exchange investors, but they do have their drawbacks as an alternative investment. The recent Chapter 11 bankruptcy filing by Inspired Healthcare Capital (IHC) has sent shockwaves through the senior living investment community. For many retirees and 1031 exchange participants, what may have been marketed as a stable, income-producing real estate opportunity has turned into a complex legal battle for recovery. In early 2026, Inspired Healthcare Capital Holdings, LLC, along with over 160 affiliated entities, filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, JOSEPH KOCSIS has 32 years of experience in the securities industry and has been listed with 7 firms. Kocsis has 2 disclosures listed on his FINRA CRD report, both disclosures are “Customer Disputes.”
A dispute dated 2/8/2023 settled for $582,723.97. The allegations were, “Claimants claim certain investments were unsuitable for them and that that risks of the investments were not revealed despite written disclosures. Claim also states a lack of supervision, and a failure to perform due diligence by broker dealer. Transactions at issue were Section 1031 Exchanges. Occurrences were in 2019 and 2020. Mr. Kocsis is alleged to have been the registered representative involved. He is not named as a respondent.”
The “Customer Dispute” dated 2/8/2023 settled for $70,000.00. The allegations were, “The investments at issue were replacement property as part of a Section 1031 Exchange. Claimants allege they were not suitable for the investment, and that there was not a reasonable basis for the investment recommendation. Claimants allege omissions and misstatements if fact. They also allege misrepresentation, breach of contract and other claims. Occurrences were in 2019 and 2020. Although not named in this claim Mr. Kocsis is alleged to have involved in the occurrences.”
Broker/dealers and financial advisors have a legal obligation to conduct "due diligence" before recommending high-risk DSTs to clients. If your advisor failed to disclose the risks of Inspired DSTs, or if they over-concentrated your portfolio in these illiquid assets, you may be able to recover your losses through FINRA Arbitration.
To discuss this or any other securities issues, contact Soreide Law Group and speak with an experienced securities lawyer at no cost: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis.
