Medical Capital Holdings, Inc
If you are an investor in Medical Capital Holdings, Inc., ("MCHI"), and/or any of its Medical Provider funding corporations ("MPs"), you may have a claim for damages, included the loss of your investment.
MCHI is a medical receivables financing company that operates to administer several MPs. Since 2003, MCHI and its subsidiaries have raised over $2.2 billion through offerings of notes to its MPs. As of March 31, 2009, MCHI's MPs had over $1.2 billion in notes outstanding, and since August 2008, five of the MPs have been in default or late in paying principal and/or interest on $992.5 million in notes.
On July 16, 2009, the Securities and Exchange Commission ("SEC") filed an emergency court action to halt a $77 million offering fraud perpetrated by MCHI, among others. The SEC alleged that MCHI defrauded investors by misappropriating about $18.5 million of investor funds and by misrepresenting to investors that no prior offerings had defaulted on or been late in making payments to investors of principal and/or interest.
The MPs are MP I, MP II, MP III, MP IV, MP V, and MP V. MCHI also operates through its subsidiary, Medical Capital Corporation ("MCC"). MCHI could also be called Med-Cap, Med-Cap Holdings, and/or Medical Capital.
Brokers-Dealers and Investment Advisors who sold their clients investments in these entities had the responsibility to perform appropriate due diligence on the investments prior to their sale. They also had an obligation to represent this information to their client-investors upon any recommendation of the investment. There are several investors in these entities that have come forward or are currently coming forward with claims, in class actions as well as other proceedings. Several institutions are also moving forward with claims and investigations, including the SEC and the Financial Industry Regulatory Authority (FINRA). One type of proceeding that may be available to an investor is an arbitration proceeding with the FINRA.
If you are someone you know has lost money investing in these products, Napoli Bern Ripka LLP can help. Please call us at (212) 267-3700.
