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MEDICAL CAPITAL SECURITIES: A PONZI SCHEME HEAVILY SOLD TO RETIREES AND THE ELDERLY

The Law Firm of David R. Chase, P.A., headed by former Securities and Exchange Commission Prosecutor and Special Assistant United States Attorney, David R. Chase, is currently representing investors against securities brokerage firms, including Securities America and Workman Securities Corporation, which sold Medical Capital Securities.  These FINRA Arbitration claims allege that the brokerage firms failed to conduct adequate due diligence of Medical Capital prior to agreeing to sell it to its retail customers, and that they materially misrepresented the true nature and risks of this product when soliciting it.

On July 16, 2009, the Securities and Exchange Commission filed an emergency court action to halt an alleged $77 million offering fraud perpetrated by Medical Capital Holdings, Inc., and others. The SEC’s Complaint claims that the defendants 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.

Although a class action has been filed against certain broker-dealers that sold Medical Capital securities, investors who have suffered substantial losses should seriously consider pursuing their own individual FINRA arbitration claims as a potentially superior alternative to joining a class action. Unlike a class action, a FINRA arbitration claim allows you to: (1) chose your own counsel (only the lead plaintiff has this right in a class action), (2) have your unique facts presented to an arbitration panel, (3) control the decision whether to settle your case and for how much, and (4) generally secure a result within approximately twelve months, as opposed to potentially years with a class action.

The Law Office of David R. Chase, P.A., based in Fort Lauderdale, Florida, represents investors worldwide in cases against the major Wall Street Firms. David R. Chase has been practicing for over 17 years, is AV-Rated by Martindale-Hubbell — its highest competence and ethics rating — and previously served as a securities prosecutor for the Federal Government.