Medical Capital Notes Class Action Lawsuit Filed for Investors

A class action lawsuit has been filed on behalf of investors who purchased Medical Capital Notes, alleging that several brokerage firms violated federal securities laws by selling the unregistered notes under false and misleading prospectuses.
The Medical Capital class action lawsuit was filed on behalf of all persons or entities who purchased investment notes issued by Medical Provider Financial Corp. III, Medical Provider Financial Corp. IV, Medical Provider Funding Corp V or Medical Provider Funding Corp VI, commonly referred to as Medical Capital Notes, from Capital Financial Services, National Securities Corp., Cullum & Burks, Securities America, Ameriprise Financial or CapWest Securities on or after September 18, 2006.
Medical Capital was set up to purchase accounts receivables of medical providers and package them as private investments. The firm raised $2.2 billion from 20,000 investors over a six-year period, but has been charged with defrauding investors.

Did You Know?
Millions of Philips CPAP Machines Recalled
Philips DreamStation, CPAP and BiPAP machines sold in recent years may pose a risk of cancer, lung damage and other injuries.
Learn MoreIn July, the Securities Exchange Commission (SEC) filed charges against Medical Capital, indicating that it conducting a number of questionable transactions with itself, some of which appeared to include receivables that did not actually exist. The SEC also indicated that the company made investments that had nothing to do with medical receivables, such as investing $7 million into a mobile phone application consisting of live video feed of a hamster in a cage, and $20 million into a movie.
The class action lawsuit over Medical Capital Notes alleges the brokerage firms violated federal securities laws by selling notes that were not registered with the SEC. The lawsuit also alleges that Medical Capital investments were misrepresented due to false and misleading information given out about the track records, the qualifications of those managing the company and the overall risks of the investments.
A number of investors have also filed individual Medical Capital lawsuit arbitration claims against their brokers through the Financial Industry Regulatory Authority (FINRA) to recoup their losses. The claims allege that through basic due diligence, brokerage firms should have discovered the Medical Capital fraud and irregularities.
"*" indicates required fields
0 Comments