Medical Capital Investors Unwittingly Invested in Pornography

Medical Capital investors who bought notes from brokerage firms such as Securities America believed they were purchasing interests in medical receivables. Unfortunately, Medical Capital appears to have been a fraudulent Ponzi scheme and many of the alleged medical receivables either were wildly over-valued or did not exist at all. This sordid tale does not end there, however. It appears that Medical Capital used investors' money to purchase a 50 percent stake in Emark Advertising, Inc., which specializes in pornographic website advertising.

EMark invested in and/or worked with pornographic websites such as www.ilovebisexuals.com, www.sadisticbondage.com and www.hotasiangays.com. So, in addition to being defrauded out of their money, Medical Capital investors' money appears to have been used for business purposes to which certain investors may have been morally opposed. Of course, Medical Capital offering documents did not disclose that investors' money would be used to fund pornographic or otherwise sexually explicit businesses.

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