Medical Capital Receiver Paints Grim Financial Picture

The U. S. Securities and Exchange Commission Receiver overseeing the Medical Capital investment fraud filed an “accounting” as of September 5, 2009. The goal of the report is to provide the status of receivership estate and its assets. Unfortunately, the news in the report paints a grim picture.

According to the Receiver’s report, as of early September 2009, the Receiver had 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. In short, 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 notes.

Dimond Kaplan & Rothstein, P.A. [] currently represents numerous Medical Capital investors who invested millions of dollars in Medical Capital notes. In addition to FINRA securities arbitration claims that the firm has filed against brokerage firms that sold Medical Capital investments, Dimond Kaplan & Rothstein, P.A. also has filed a class action against Securities America, which sold Medical Capital investments to many investors. The crux of the arbitration claims and the class action lawsuit are allegations that the brokerage firms failed to perform adequate due diligence before recommending and selling the Medical Capital investments or turned a blind eye toward obvious red flags that reflected the fraudulent nature of the Medical Capital entities.

Dimond Kaplan & Rothstein, P.A. is an AV-rated, nationally recognized law firm with extensive experience representing investors throughout the United States and Latin America in investment fraud and stockbroker and brokerage firm negligence cases. If you lost money in Medical Capital investments, please contact attorney Jeffrey B. Kaplan of Dimond Kaplan & Rothstein, P.A. at (888) 578-6255 or for a free case evaluation. You also may visit the firm on the web at [] or [].

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