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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 investorfunds 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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