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Investors Unlikely to Recover Significant Money from Medical Capital Receivership
Posted by: Jeffrey B. Kaplan
July 15, 2010

On July 12, 2010, the Receiver that the SEC appointed for the Medical Capital investment fraud filed his twelfth monthly status report. Over the past two months the Receiver has collected little additional money. While the Receiver had collected nearly $100 million through April 2010, since that time he has recovered less than $5 million in additional cash for the Medical Capital estate. Medical Capital investors still are owed nearly $1.1 billion and it appears highly unlikely that they will recover a significant amount of that from the Medical Capital receivership.

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Assets Recovered by SEC Receiver for Medical Capital Fall Far Short of Investor Losses
Posted by: Jeffrey B. Kaplan
June 15, 2010

On June 10, 2010, the court-appointed SEC receiver for the Medical Capital investment fraud filed his eleventh monthly status report. Through May 31, 2010, the Receiver has collected slightly more than $100 million in cash for the Medical Capital estate. This represents less than $2 million in additional cash recovery over the past month, reflecting a distinct slow down in the pace at which the receiver is recovering money. Medical Capital investors still are owed nearly $1.1 billion. And given the amount of cash that the SEC receiver has been able to recover to date, it appears that investors likely will lose approximately $1 billion.

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FINRA ARBITRATOR AWARDS $400,000 TO MEDICAL CAPITAL INVESTOR
Posted by: Jeffrey B. Kaplan
June 07, 2010

Hundreds of Similar FINRA Arbitration Cases Remain Pending

In May 2010, a Financial Industry Regulatory Authority (FINRA) arbitrator awarded $400,000 to an investor who lost money in Medical Capital securities. The award was entered against Peak Securities Corp., which is the brokerage firm that recommended and sold the fraudulent investment product.

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Medical Capital Investors Stand to Lose Approximately $1 Billion -- FINRA Arbitration Claims May Be Best Chance to Recover Losses
Posted by: Jeffrey B. Kaplan
May 17, 2010

On May 10, 2010, the court-appointed SEC receiver for the Medical Capital investment fraud filed his tenth monthly status report. The Receiver successfully has collected nearly $100 million in cash for the Medical Capital estate, but Medical Capital investors still stand to lose approximately $1 billion.

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Medical Capital Investment Losses Remain Greater than $1 Billion -- FINRA Arbitration Claims May Be Best Chance to Recover Losses
Posted by: Jeffrey B. Kaplan
April 13, 2010

On April 12, 2010, the court-appointed SEC receiver for the Medical Capital investment fraud filed his ninth monthly status report. While the Receiver has worked diligently to preserve Medical Capital's estate, to collect outstanding medical receivables that actually exist, and to sell certain assets in order to bring more cash into Medical Capital, the outlook for Medical Capital investors continues to look grim.

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Colorado Broker Loses Securities License after Selling Medical Capital Holdings Inc. Private Placements
Posted by: Jeffrey B. Kaplan
April 12, 2010

Colorado securities regulators have accused Colorado broker John B. Guyette of violating the Colorado Securities Act by offering and selling Medical Provider Funding Corp. private notes, which were marketed by Medical Capital.

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Medical Capital Criminal Investigation
Posted by: Jeffrey B. Kaplan
March 31, 2010

Federal prosecutors have opened a criminal investigation into the top executives of Medical Capital Holdings, CEO Sidney M. Field and President Joseph J. "Joey" Lampariello. The former Medical Capital executives requested that the court lift an asset freeze so that the men could use Medical Capital assets to pay their legal bills. The court denied the request.

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Medical Capital Investors Unwittingly Invested in Pornography
Posted by: Jeffrey B. Kaplan
March 26, 2010

Medical Capital investors who bought notes from brokerage firms such as Securities America believed they were purchasing interests in medical receivables. Unfortunately, Medical Capital appears to have been a fraudulent Ponzi scheme and many of the alleged medical receivables either were wildly over-valued or did not exist at all. This sordid tale does not end there, however. It appears that Medical Capital used investors' money to purchase a 50 percent stake in Emark Advertising, Inc., which specializes in pornographic website advertising.

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Medical Capital Investors' Best Hopes for Recovery of Investment Losses Appear to be Arbitration Claims Against Brokerage Firms that Sold the Investments
Posted by: Jeffrey B. Kaplan
March 09, 2010

The court-appointed SEC receiver for the Medical Capital investment fraud filed his seventh status report on February 10, 2010. Unfortunately for Medical Capital investors, the evidence that support claims that Medical Capital was a Ponzi scheme continues to mount.

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Massachusetts Securities Regulators Have Sued Securities America, Inc.
Posted by: Jeffrey B. Kaplan
January 26, 2010

Massachusetts Securities Regulators Have Sued Securities America, Inc. for Securities Fraud Associated with the Recommendation and Sale of Medical Capital Notes

On January 26, 2010, the Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth ("Massachusetts Regulators") sued Securities America, Inc., accusing the brokerage firm of committing securities fraud on a massive scale in course of recommending and selling Medical Capital notes.

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Medical Capital Investors Still Owed $1.7 Billion
Posted by: Jeffrey B. Kaplan
January 19, 2010

The court-appointed receiver for the Medical Capital fraud filed his sixth status report on January 11, 2010. As with the receiver's earlier reports, this report outlines the various fraudulent aspects of the Medical Capital entities. The report also reveals the unchanging fact that investors are unlikely to recover much money from the receivership. Specifically, the report discloses that Medical Capital investors are owed $1.7 billion, which is far greater than the assets available to pay the investors. The receiver's report further states that Medical Capital's lending activities were unprofitable beginning with the creation of its first notes, which purportedly were backed by medical receivables.

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Medical Capital Receivership Continues to Leave Investors Shortchanged
Posted by: Jeffrey B. Kaplan
November 23, 2009

The U. S. Securities and Exchange Commission Receiver overseeing the Medical Capital investment fraud recently filed his Fourth Report to the Court on November 10, 2009. This report provides the status of receivership estate and its assets. While the Receiver appears to have successfully increased the funds in the estate, such recoveries continue to fall far short of the funds needed to pay back all investors.

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Medical Capital Receiver Paints Grim Financial Picture
Posted by: Jeffrey B. Kaplan
October 19, 2009

Medical Capital Receiver Paints Grim Financial Picture

The U. S. Securities and Exchange Commission Receiver overseeing the Medical Capital investment fraud filed an "accounting" as of September 5, 2009. The goal of the report is to provide the status of receivership estate and its assets. Unfortunately, the news in the report paints a grim picture.

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U. S. Securities and Exchange Commission Accuses Medical Capital of Securities Fraud
Posted by: Jeffrey B. Kaplan
August 20, 2009

The U. S. Securities and Exchange Commission has accused Medical Capital Corporation (MCC), Medical Capital Holdings, Inc (MCHI) and Medical Provider Funding Corporation VI (MP VI) (collectively, "Medical Capital") of securities fraud. Specifically, the SEC has alleged in a lawsuit that Medical Capital defrauded investors by misappropriating about $18.5 million of investor funds and by misrepresenting that no prior Medical Capital securities offerings had defaulted on or been late in making payments to investors of principal and/or interest. According to the court-appointed receiver's report, the fraud could be even greater.

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