The list of brokerage firms facing arbitration claims from investors who suffered losses from investments in
The basis of the lawsuits against concerns breach of fiduciary duty, with claimants alleging that brokerages like Based in Tustin, California, Medical Capital purchases accounts receivables of medical providers and then packages them as private investments. Over a six-year period, the firm raised $2.2 billion from 20,000 investors.
In addition, the SEC says Medical Capital made a number of multimillion-dollar investments that had nothing to do with its core business of medical receivables. Among those investments:
• $20 million for “The Perfect Game,” a film about a group of Mexican youths who became the first non-U.S. team to win the Little League World Series in 1957;
• $7 million in a company that marketed a mobile phone application, which consisted of a live video feed of a hamster in a cage; and
• An unspecified amount for a 118-foot yacht called The Home Stretch.
If you have questions about your Medical Capital investments, please contact us. If Securities America, QA3 Financial Corp. or another brokerage has sold you Medical Capital notes, tell us your story by leaving a message in the Comment Box below or on the Contact Us form. We want to advise you on your legal options.
November 6th, 2009 at 1:06 pm
My sister and I invested over $100,000 in Medical Capital notes through a firm called Morgan Peabody which has been closed down. When we invested we were told that Medical Capital was in effect “factoring” accounts for physicians and medical care providers which would subsequently be paid by Medicare or by major healthcare insurance carriers. We were never advised of the other various ventures in which Medical Capital was involved. Trustees on the notes were Mellon Bank and Wells Fargo. What are chances of recovery?
January 19th, 2010 at 5:21 pm
I purchased a Medical Capital Note. At the time I was told Medical Capital factored Receivables, was very safe as it paid a deep discount for Receivables (most of which we medicare related), funds were collected and secured by a bank trustee and collected funds ran a surplus of approximately 30%, investors were to be paid before the issuing entity. How could I proceed?