UPDATE ALERT: Investors in Securities America and Medical Capital Holdings Investigation
Zamansky & Associates represents a number of investors who purchased private securities issued by Medical Capital Holdings, which were sold to them by brokers associated with Securities America, the independent broker-dealer arm of Ameriprise Financial. While we continue to represent and hear from additional victims of the alleged fraud, please note that Montana’s commissioner of securities and insurance brought a claim against Securities America, Inc. in August 2010, becoming the second state to file a lawsuit in 8 months. The State of Massachusetts brought a claim against the firm in January 2010.
Both lawsuits center on Securities America’s sales practices, alleging Securities America withheld material information about heightened risks associated with the notes issued by Medical Capital Holdings.
Through the investor arbitration process, investors can file claims against their brokers in order to recover losses.
Last summer, the SEC accused Medical Capital Holdings of fraud for the sale of $700 million of private securities in the form of “notes.” Since that time, a court-appointed receiver has evaluated Medical Capital’s assets and has questioned the structure of the six transactions which resulted in Medical Capital’s selling of $2.2 billion of notes to investors.
In addition to withholding material information, Montana’s lawsuit alleges Securities America brokers sold the notes to “non-accredited” investors. Non-accredited investors have net worths of less than $1 million. Allegedly, brokers continued to sell Medical Capital notes even after an executive at Securities America sent an email expressing grave concerns about a possible “run on the bank” at Medical Capital.
To learn more about our investigation or to pursue a potential claim please contact us here.