CORAL SPRINGS, Fla., Nov. 16, 2009 (GLOBE NEWSWIRE) -- The securities law firm Blum & Silver, LLP (www.stockattorneys.com or www.medicalcapitallosses.com) has filed a number of 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, Next Financial, and other brokerage firms. Many of the firm's clients 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 Blum & Silver, LLP partner Scott L. Silver.
Investors who bought Medical Capital notes from a brokerage firm or investment advisor may be able to recover their investment losses through 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 Silver.
Blum & Silver, LLP is a nationally-recognized securities law firm headquartered in South Florida, with a satellite office in New York, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against many of the country's top brokerage houses. If you wish to discuss this announcement or have information relevant to our investigation, please contact Scott L. Silver, Esq. of Blum & Silver, LLP, at 1-877-STOCK LAW (1-877-786-2552) or visit us on the web at http://www.stockattorneys.com.
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