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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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