MIAMI, Oct. 28, 2009 (GLOBE NEWSWIRE) -- The securities law firm of Dimond Kaplan & Rothstein, P.A. (http://www.dkrpa.com or http://www.investmentfraud-lawyer.com) has filed a number of FINRA arbitration claims to recover Medical Capital investment losses. The firm represents investors throughout the United States who collectively have lost millions of dollars on Medical Capital investments that they purchased through Securities America, WFP Securities, and other brokerage firms. Many of the firm's clients the claims also lost money in two other allegedly fraudulent investment products, DBSI and Provident/Shale Royalties.
Medical Capital packaged medical receivables into notes and sold them as private placements. The SEC has accused Medical Capital Corporation, Medical Capital Holdings, Inc., and Medical Provider Funding Corporation VI (collectively, "Medical Capital") of securities fraud, including misappropriating millions of dollars and making misrepresentations in offering documents.
According to a report issued by the court-appointed SEC Receiver, the fraud could be even greater. The report claims that Medical Capital spent millions of dollars on assets that had nothing to do with medical receivables, including $20 million on a Hollywood movie and a 118-foot yacht. The Receiver's report also claims that some of the receivables that Medical Capital packaged into the notes were overvalued and some did not exist at all.
According to The SEC Receiver's recent September 2009 report, the Receiver has 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. "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 note," said Dimond Kaplan & Rothstein, P.A. partner Jeffrey Kaplan.
Investors who bought Medical Capital notes from a brokerage firm or investment advisor may be able to recover their investment losses through FINRA arbitration claims against the brokerage firm. "We believe that the brokerage firms that sold Medical Capital investments failed to perform adequate due diligence that would have revealed the fraudulent nature of the investments or ignored obvious red flags." said attorney Kaplan.
Dimond Kaplan & Rothstein, P.A. is an AV-Rated law firm that represents investors nationwide in stockbroker fraud and investment loss cases. The firm represents a number of Medical Capital investors, and has represented investors in claims involving limited partnerships, stocks, bonds, options, and hedge funds. If you suffered Medical Capital investment losses, please contact Jeffrey Kaplan, Esq. 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.