Medical Capital Holdings, Inc., et al.
On August 3, 2009, the SEC obtained a temporary restraining order and asset freeze to halt an ongoing offering fraud allegedly perpetrated by Sidney M. Field and Joseph J. Lampariello and their companies, Medical Capital Holdings, Inc., Medical Capital Corporation (MCC) and Medical Provider Funding Corporation VI (MP VI).
According to the complaint, the defendants defrauded investors by misappropriating approximately $18.5 million of the $76.9 million raised through the sale of MP VI notes to pay administrative fees to MCC. The SEC alleges that these fee payments were contrary to representations in MP VI's original offering documents, which stated that administrative fees would not be paid out of proceeds from the sale of notes, and contrary to representations in MP VI's supplemental offering documents that less than $4 million had been used for purposes other than purchasing accounts receivables. The SEC also alleges that the defendants misrepresented that no prior offerings had defaulted on or been late in making payments to investors of principal and/or interest.
The securities law firm of Sonn & Erez PLC currently is investigating the sales practices and due diligence of broker-dealers who solicited investors to purchase Medical Capital Holdings' private securities in the form of notes. If you are a retail or institutional investor and sustained investment losses related to Medical Capital Holdings, contact our securities fraud team. We can evaluate your situation to determine if you have a claim. Call 866-372-8311 for a free consultation.
