Banks Law Office, P.C. is evaluating claims for investors who were victims of the Medical Capital Corporation alleged investment scheme. Investors who lost money in Medical Capital are urged to consider whether they should file their own individual FINRA arbitration claims or participate in a case that has been filed as a class action.
Portland, OR (PRWEB) November 5, 2009 -- Medical Capital Corporation raised over $2.2 billion with notes from investors for Medical Provider Funding Corporation and related companies over the last six years. The funds were supposed to be used to buy and factor medical accounts receivable. The Securities and Exchange Commission (SEC) filed a lawsuit to take over Medical Capital’s operations when it became apparent to the SEC that the executives had probably violated the securities laws. Securities and Exchange Comm'n v. Medical Capital Holdings, Inc., No. SACV09-818DOC (C.D. California 7-16-09). Since then, documents filed in the case allege the following: Some of the investors’ money was used to pay unauthorized “administrative fees” to the executives of Medical Capital and related companies. In addition, the Medical Capital group of companies attempted to hide from investors the fact that they were in dire financial straights. And, one of the related Medical Capital companies purchased a 118' yacht with investor funds and was paying a full time crew of three. The yacht served no known business purpose. To add to the bad news, $548 million of receivable accounts on the books of Medical Capital are due from companies that apparently no longer even exist.
In the SEC lawsuit, the court appointed a receiver to freeze the assets and determine the true condition of Medical Capital. The receiver is working diligently and has now filed three reports. Banks Law Office anticipates from those reports that investors will not realize a substantial recovery as a result of the receivership, because there simply will not be enough assets to repay investors.
Options For Investors Seeking To Recover Their Losses
Investors seeking to recover their investment losses have 2 alternatives: file a FINRA arbitration case, or participate in a federal case that has been filed seeking class action status. Each alternative is discussed below.
1. File a FINRA securities arbitration claim to recover Medical Capital losses. Investors, especially later investors, may have valid claims against the brokerage and investment advisory firms such as Securities America, Cap West, and Ameriprise that recommended the Medical Capital investments, if they were misled into believing that the investment was safer than it was. Such claims will have to be brought as FINRA securities arbitrations. Depending on how and when the Medical Capital investment was sold, this alternative may offer the best chance for a significant recovery of losses. Investors should find a lawyer specializing in securities arbitration lawyer to evaluate their individual facts. Banks Law Office is offering free evaluations for Medical Capital investors. If you are interested in having us review your claim, please call our office at 503-222-7475 and ask to speak with Robert Banks or Kristen Wiljanen. Or, complete an evaluation form at our website, www.protectinvestor.com
2. Participate in a Medical Capital federal court class action case that was filed in California. The primary advantage to participating in a class action is that there is little that individual investors need to do. The class action lawyers represent the entire class of investors, and have no contact with the vast majority of class members. If the case is successful, investors need only fill out a claim form at the end of the case to receive a portion of any recovery. But, there are disadvantages. A class action will almost always take longer to resolve than an individual FINRA arbitration case. Individual FINRA arbitration claims generally take 12-15 months to resolve from the date of filing to the final award, whereas class actions can take years. Also, investors who file their own arbitrations will have more control over their cases, including the amount of damages to request, and whether to accept a settlement or go to hearing. Another consideration is that class action cases cannot make claims for violation of state securities laws. This is important because the state laws almost always provide more investor protections than their federal counterparts.
Banks Law Office P.C. is an investor rights law firm that has provided quality representation to investors for more than 20 years. Visit our website at www.bankslawoffice.com.
Contact: Robert S. Banks, Jr., Banks Law Office, P.C. 503-222-7475
See Also:
- New Employment Law Guide for HR Helps Reduce the Risk of Costly Litigation
- New York Law Firm Calls Attention To Work By Law Enforcement To Eliminate Dangerous Asbestos Mishandling
- Thirteen New York Firefighters are Injured when Fire Trucks Collide
- Parallels Desktop 5 for Mac Offers Fastest Performance on Snow Leopard and for Windows 7 Available
- United Law Group to Litigate on Behalf of Over 40,000 Homeowners Against Major Servicers and Lenders for Alleged Improprieties
[Via Legal / Law]
- buy generic accutane
- cheap finasteride - order generic propecia online
- prescription medications without a prescription
No comments:
Post a Comment