The number of investors who suffered losses in private securities issued by Medical Provider Funding Corporation and Medical Capital Holdings is growing daily. In July, the Securities and Exchange Commission (SEC) filed fraud charges against Medical Capital in connection to the sale of $77 million of these investments. A short time later, a class lawsuit was filed in the U.S. District Court for the Central District of California against various brokerage firms that sold the securities (called Medical Capital Notes). Among the firms cited as defendants: Cullum & Burks Securities, Securities America, Ameriprise Financial, and CapWest Securities.
According to the complaint, the private placement memoranda issued for the Medical Capital Notes misrepresented and omitted material facts regarding the terms of the offerings, the use of investors’ funds, the track record of various Medical Capital entities, the backgrounds and qualifications of the executives responsible for running the companies, and the overall risks of an investment in the Medical Capital Notes.
In addition, the complaint alleges that the notes should have been registered with the SEC, but in fact were not.
Maddox Hargett & Caruso currently is building cases for investors who lost money in Medical Capital Holdings. To begin your Medical Capital Fraud Recovery, complete this form.