Corporate & Securities Law

Medical Capital Lawsuit Becomes Investors? Legal Weapon Of Choice

By Steven Caruso

The phrase ?Medical Capital lawsuit? has become increasingly popular among investors following recent fraud charges filed against the Tustin-based healthcare company by the Securities and Exchange Commission (SEC).

In its complaint, the SEC accuses Medical Capital Holdings, Medical Capital Corporation, Medical Provider Funding Corporation VI and company officers Sidney M. Field, and Joseph J. Lampariello of securities fraud and misappropriating about $18.5 million of investors? funds.

The SEC goes on to state that Medical Capital and related subsidiaries lied to backers as the companies allegedly raised and misappropriated millions of dollars of investors’ money while at the same time failing to disclose information about $1.2 billion in outstanding notes and $993 million in notes that had entered into default.

On the same day that the SEC filed fraud charges, the Financial Industry Regulatory Authority (FINRA) issued a sweep notice to an undisclosed number of brokerage firms to obtain information about sales of the Medical Capital Notes.

Investors who bought Medical Capital Notes based on the recommendation of a broker/dealer or investment firm may be able to recover their financial losses by filing an individual arbitration claim with FINRA. If you sustained investment losses in Medical Capital Holdings, contact our securities fraud team. We can evaluate your situation to determine if you have a viable claim.

Full post as published by Representing Investors on January 14, 2010 (boomark / email).