The court-appointed SEC receiver for the Medical Capital investment fraud filed his seventh status report on February 10, 2010. Unfortunately for Medical Capital investors, the evidence that support claims that Medical Capital was a Ponzi scheme continues to mount. The end result is that it appears highly unlikely that Medical Capital investors will recover much, if any, of their investment losses from the Medical Capital receivership. To date, investors are still owed more than $1 billion and, based on information that we have obtained, it appears that the best opportunity to recover Medical Capital investment losses is to file a FINRA arbitration claim against the brokerage firm that sold the Medical Capital notes. These brokerage firms include Securities America and QA3 Financial. Documents acquired as a result of a lawsuit filed by the Commonwealth of Massachusetts reflect that brokerage firms such as Securities America were aware of, but ignored, serious red flags concerning Medical Capital. Securities America kept this information from its own brokers, and failed to alert investors of the red flags. These documents are expected to serve as key evidence in securities arbitration claims by Medical Capital investors against Securities America.