According to a recent article in InvestmentNews and a recently filed court exhibit, securities regulators were concerned about Medical Capital’s lack of audited financial information five years before Medical Capital Holdings Inc.'s private-placement financings imploded and wiped out $1.1 billion in investors' cash.
Continue reading "Red Flags Concerning Medical Capital Notes Existed as Early as 2004" »
In response to recent concerns over high-risk private offerings such as Medical Capital and Provident Royalties, the Financial Industry Regulatory Authority (FINRA) has issued a Notice to Members (NTM-10-22) that reminds brokerage firms of their obligations to investigate private placements before allowing their representatives to sell those investment products. However, FINRA only regulates registered broker-dealers, and many such offerings are recommended or sold by financial advisory firms that are not FINRA-registered.
Continue reading "Problems Involving Private Offerings Escalate" »
Private placement offerings (also known as Reg D offerings), such as Medical Capital Holdings Inc. and Provident Royalties LLC, have devastated unsuspecting investors. Such offerings, as well as the unscrupulous broker-dealers who pushed them, have wound up in the crosshairs of state securities regulators. See “Cracking Down on ‘Private Placement’ Investments,” March 27, 2010, Wall Street Journal, by Jane J. Kim.
Continue reading "The Hammer is Coming Down on Private Placement (Reg D) Offering Scams" »
New concerns have risen over investors being misled about the facts and risks of private placement offerings (Reg D offerings) often recommended by financial advisers in smaller towns that are outside the financial industry mainstream. While misrepresentations about high-risk private offerings are by no means limited to small towns, small town residents with nest eggs have been disproportionately victimized by unscrupulous offerings.
Continue reading "Many Investment Scams Target Small Town Investors" »
The Commonwealth of Massachusetts Securities Division recently filed a Complaint (“Complaint”) that makes some startling allegations about Securities America’s actions in selling Medical Capital Notes. The collapse of the Medical Capital investments has left investors nationwide in the hole to the tune of about $1 billion.
Continue reading "Securities America Faces a New Wave of Medical Capital Problems" »
The Massachusetts Securities Division recently filed a complaint against Securities America related to its private offerings of Medical Capital Notes. The collapse of the Medical Capital investments has left investors nationwide in the hole to the tune of about $1 billion.
Continue reading "Evidence Against Securities America Mounts in Medical Capital Cases" »
Private investments (also known as private placements or Reg D offerings) have been the subject of a growing number of fraud charges by the U.S. Securities and Exchange Commission and some states. Such deals, including oil and gas ventures and real estate partnerships, have historically been capitalized by sales to individual investors through independent broker-dealers. Promoters of these investments depend upon this channel to raise money and the broker dealers reap rich commissions on the private placements with loads up to 30%.
Continue reading "Reg D Offerings and Other Private Investments Expose Investors to Huge Risks" »
The Receiver for Medical Capital Holdings Inc. issued his Third Report on October 9, 2009. The most recent report did contain some additional information but was, in most part, a recap of what was included in the Second Report. The reports can be found at http://www.medicalcapitalreceivership.com. Nothing in the Third Report indicates any greater likelihood of recovery for investors directly from Medical Capital. As indicated in the reports, out of the 104 medical accounts receivable clients listed, 53 of the accounts, totaling some $542,894,528, appear to no longer exist.
Continue reading "Medical Capital Holdings Alert - Investors Face Tremendous Losses" »
The Receiver for Medical Capital Holdings Inc. issued his Second Report on September 7, 2009. According to the Report the estimate for the amount of money raised through the six offerings is $1.778 billion with $268 million in administrative fees taken and a staggering $1.079 billion still due investors. On July 16, the SEC charged Medical Capital Holdings Inc. with fraud related to the sale of $77 million of private securities in the form of notes.
According to a recent article in InvestmentNews, a former executive of Securities America feared a “panicked run on the bank” for clients who held securities issued by Medical Capital Holdings Inc. On July 16, the SEC charged Medical Capital Holdings Inc. with fraud related to the sale of $77 million of private securities.
