Investors who suffered losses because of financial ties to Medical Capital Holdings have taken a lead from a recently filed fraud lawsuit by the Securities and Exchange Commission (SEC) and are moving forth with legal claims of their own. In addition to suing Medical Capital, investors are initiating legal action against the brokerage firms that sold them Medical Capital investments and filing arbitration claims with the Financial Industry Regulatory Authority (FINRA) on charges of alleged breach of fiduciary duties and misrepresentation, as well as other allegations.
The SEC’s lawsuit against Tustin, California-based Medical Capital, which makes its profits by buying and then collecting on unpaid medical bills, alleges that the company stole some $18 million from investors and failed to disclose that several of its funds had entered into default.
At the same time the SEC filed its fraud charges against Medical Capital, FINRA issued a notice to an undisclosed number of broker-dealers for information about their sales practices regarding client investments in Medical Capital.
Currently, Medical Capital Holdings is under a court-appointed receiver, Thomas Seaman, along with its subsidiaries and affiliates: Medical Capital Corp. and Medical Provider Funding VI. The company’s assets, the assets of its affiliates and two executives – CEO Sidney Field and Joseph Lampariello, president and chief operating officer – also have been permanently frozen. Both men are named in the SEC’s July 16 lawsuit.
Tell us about your situation with Medical Capital by leaving a message in the Comment Box below or Contact Us form. We want to consult you on your legal options.
October 18th, 2009 at 3:34 pm
Are you looking at Securities America, who I understand was the primary dealer that offered MedCap to financial advisors, including mine. I understand that Securiteis America is owned by Ameriprise Foinancial which is owned by TD Bank. I too am interested in my options at this point.
June 27th, 2010 at 7:45 am
GO GET THEM