Latest Receiver Report Shows Substantial Losses, Siphoning at Medical Capital

The most recent report filed by the Receiver in the Medical Capital receivership shows Medical Capital was generating substantial losses from operations, contrary to representations made to investors. For instance, the Receiver noted that Medical Capital’s lending operations “were unprofitable and resulted in losses in excess of $316 million since the creation of MFPC I ….”   These losses alone represent approximately 30% of the total investor losses, which are now estimated by the Receiver at $1.079 billion. In addition, Medical Capital received administrative fees of over $323 million, according to the Receiver.

To date, approximately $23 million was collected by the Receiver, or just above 2% of the $1.079 billion in Medical Capital losses.

The Receiver also noted that

“[o]f the 104 medical accounts receivable clients listed on the various NCCR reports by Medical Capital, 53 of these accounts (totaling $542,894,528) are not viable or no longer exist.”

The Receiver’s Report, which could be found here, details the efforts made to identify and sell any remaining assets of Medical Capital.

The securities litigation law firm of Chapman & Associates continues to file cases on behalf of Medical Capital investors, against the brokerage firms that carelessly investigated the Medical Program before recommending it to their customers. If you lost money in the Medical Capital scheme, you may contact our firm for a free evaluation of your claim. To do so, call 866-220-3300 or 216-241-8172, and ask to talk to John Chapman or Alin Rosca.

For more information about the Chapman securities law firm, click here. For important disclosures about our firm, click here.

Chapman & Associates Taking Legal Action on Behalf of Medical Capital Investors

The securities litigation law firm of Chapman & Associates has taken legal action on behalf of families victimized in the Medical Capital Ponzi scheme.  Chapman & Associates has filed claims in Ohio, Massachusetts, and Connecticut. Additional claims will be filed in California, Idaho, and other states.

“Our clients are victim of decisions made by securities brokerage companies to sell investments in the Medical Capital program without first adequately investigating it,” said John Chapman, a securities lawyer.   “We intend to compel those brokerage firms to compensate the Medical Capital investors for their losses,” he added.

The claims filed by Chapman & Associates on behalf of its clients are proceeding in FINRA arbitration. Every brokerage firm is a member of FINRA, and they must arbitrate disputes with their customers. Arbitration is generally a less expensive and faster way to resolve disputes, with cases usually taking less than a year and a half.

In the cases already filed, the Chapman & Associates attorneys will start selecting the arbitration panels, scheduling the important deadlines in the case, and gathering evidence for the hearing.  Due to confidentiality reasons, we will send individual updates to our clients, rather than posting them on this website.

The Chapman & Associates attorneys continue to receive messages from Medical Capital investors interested in recovering their losses, and are working to prepare new cases on behalf of investors. If you lost money in the Medical Capital Ponzi scheme, you may contact our firm for a free evaluation of your claim. To do so, call 866-220-3300 or 216-241-8172, and ask to talk to John Chapman or Alin Rosca.

For more information about the Chapman securities law firm, click here. For important disclosures about our firm, click here.

Medical Capital Sued for Perpetrating Ponzi Scheme

Medical Capital Holdings, Inc., Medical Capital Corporation, Medical Provider Funding Corp., Sidney Field, and Joseph Lampariello were sued by the Securities and Exchange Commission on August 3, 2009, for perpetrating an alleged Ponzi scheme.

Investigation by the securities litigation law firm of Chapman & Associates, LLC, determined that the Medical Capital principals and their accomplices sold over $2.2 billion of unregistered, non-exempt securities. The unregistered securities, in the form of notes and evidence of indebtedness, were sold to thousands of investors nationwide.

Chapman & Associates attorneys established that Medical Capital’s most recent fraudulent offering totalled approximately $77 million. Of that amount, more than $18 million appears to have been converted by the organizers of the Medical Capital scheme. The remaining funds may have been distributed to earlier investors as “returns” on their investment, “in typical Ponzi scheme fashion,” according to John S. Chapman, a securities attorney.

The Medical Capital organizers failed to disclose to their new investors that they had already defaulted on earlier Medical Capital loans, and that the investments were going to be used for payments to earlier investors.

The U.S. District Court for the Central District of California ordered the Medical Capital organizers to cease the sale of unregistered securities, froze the assets of Medical Capital, and appointed a receiver.

Chapman & Associates’ investigation determined that the Medical Capital perpetrators used a network of broker-dealers to sell the unregistered notes to the public. “Those broker-dealers who negligently approved the sale of fraudulent securities to the investing public will be held accountable,” said John Chapman. “Our law firm will vigurously pursue claims against those who had a duty to ensure the integrity of the marketplace, but turned a blind eye on the numerous irregularities and red flags surrounding the Medical Capital offering,” said Chapman.

Chapman & Associates is preparing to take action on behalf of investors victimized by the “Medical Capital” scheme. If you lost money in that scheme, please contact us immediately.

Please click here for important statements and disclosures regarding this case.