Blog Post

Medical Capital Receiver Paints Grim Financial Picture

Posted by: Jeffrey B. Kaplan
October 19, 2009
Topic: Medical Capital Investment Fraud

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.

According to the Receiver's report, as of early September 2009, the Receiver had been able to take possession of or collect only slightly more than $3.3 million for the Medical Capital estate. Meanwhile, the Receiver has identified more than $1 billion that is still owed to investors. In short, unless the Receiver is able to recover nearly $1 billion more for the Medical Capital estate, investors in Medical Capital notes appear very likely to lose all of the money that they invested in the notes.

Dimond Kaplan & Rothstein, P.A. [www.dkrpa.com] currently represents numerous Medical Capital investors who invested millions of dollars in Medical Capital notes. In addition to FINRA securities arbitration claims that the firm has filed against brokerage firms that sold Medical Capital investments, Dimond Kaplan & Rothstein, P.A. also has filed a class action against Securities America, which sold Medical Capital investments to many investors. The crux of the arbitration claims and the class action lawsuit are allegations that the brokerage firms failed to perform adequate due diligence before recommending and selling the Medical Capital investments or turned a blind eye toward obvious red flags that reflected the fraudulent nature of the Medical Capital entities.

Dimond Kaplan & Rothstein, P.A. is an AV-rated, nationally recognized law firm with extensive experience representing investors throughout the United States and Latin America in investment fraud and stockbroker and brokerage firm negligence cases. If you lost money in Medical Capital investments, please contact attorney Jeffrey B. Kaplan of Dimond Kaplan & Rothstein, P.A. at (888) 578-6255 or jkaplan@dkrpa.com for a free case evaluation. You also may visit the firm on the web at [www.dkrpa.com] or [www.investmentfraud-lawyer.com].

Topics

Bernard L. Madoff Ponzi Scheme
DBSI Securities Fraud
FINRA Fines NEXT Financial Group
General Securities Fraud
Medical Capital Investment Fraud
North Carolina Fraud
Provident and Shale Royalties
Regions Bank - U.S. Pension Trust and U.S. College Trust
SEC Bars Investment Advisor Charles Ganz
UBS Sales of Lehman Brothers Principal Protected Notes

Recent Updates

August 20, 2010
Foresee Strategies Insurance Funds Losses

July 15, 2010
Investors Unlikely to Recover Significant Money from Medical Capital Receivership

June 25, 2010
SEC Stops $34 Million Jacksonville, Florida Ponzi Scheme

June 24, 2010
SEC Charges Palm Beach County Investment Adviser With Running a Ponzi Scheme and Stealing Client Funds

June 15, 2010
Assets Recovered by SEC Receiver for Medical Capital Fall Far Short of Investor Losses

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