FORT LAUDERDALE, Fla., Jan. 31, 2010 (GLOBE NEWSWIRE) -- The securities law firm of Sonn & Erez PLC (http://www.sonnerez.com) alerts Medical Capital investors that William Galvin, the Secretary of State of Massachusetts, has charged in a civil case that Securities America, Inc. committed securities fraud in the sale of Medical Capital notes, alleging that material risks were not disclosed to investors. In the Matter of Securities America, Docket 2009-0085 (http://www.sec.state.ma.us/sct/sctsa/sa_complaint.pdf).
Sonn & Erez, PLC, a law firm representing investors who bought Medical Capital Notes, commented that this new case supports investors’ claims that they were misled about the risks of buying Medical Capital Notes: "It is clear from the Massachusetts allegations that there is evidence that Securities America is subject to liability for the sale of Medical Capital Notes to its customers,” said Jeffrey Sonn, Esq., of Sonn & Erez. The Massachusetts lawsuit alleged that "…all material risks and information regarding MC Notes were not disclosed to investors. These risks were known to [Securities America]. Year after year, the due diligence analyst, retained by [Securities America] to conduct a review of the various Medical Capital offerings, specifically requested and at many times pleaded that investors be informed of certain heightened risks." Sonn & Erez is representing victims of the Medical Capital fraud.
Medical Capital related entities and their officers have been charged with securities fraud and operating a Ponzi-Scheme in the sale of over $2 billion of Medical Capital notes. (SEC Litigation Release Act 21141).The SEC's complaint alleges that, since 2003, MCHI, MCC, Fields, and Lampariello have raised over $2.2 billion through offerings of notes in MP VI and five other similarly structured SPCs. As of March 31, 2009, MP VI and its affiliated SPCs had over $1.2 billion in notes outstanding, and since August 2008, five of the SPCs have been in default or late in paying principal and/or interest on $992.5 million in notes. Monies raised from the notes were sold as being invested in medical receivables, but was allegedly used to fund a ponzi scheme.
Investors in Medical Capital Notes have hired Sonn & Erez to represent them against brokerage firms, such as Securities America, for their claims. Sonn & Erez represents individual and institutional clients in securities arbitration and litigation claims in cases all over the U.S. Sonn & Erez works with attorneys in Florida, Georgia and California to represent victims of the scheme.
Sonn & Erez PLC is a nationally recognized law firm with significant experience representing investors across the United States and Latin America in investment fraud cases involving stocks, bonds, options, private placements, Regulation D offerings, principal protected notes, structured products, and hedge funds. The law firms currently represent Medical Capital investors who have millions of dollars. If you are a victim of Medical Capital investment losses, please contact attorney Jeffrey Sonn (jsonn@sonnerez.com), Jeffrey Erez (jerez@sonnerez.com) at Sonn & Erez PLC toll free (866) 872-8311 for a free consultation. See www.sonnerez.com for more information.