Medical Capital Holdings Claims Groups Forming Now.
Did Securities America and/or Cedar Brook Financial Partners Sell You a Medical Provider Funding Corporation Investment Issued By
Medical Capital Holdings, Inc.?
If so, you likely were promised a reasonable return and protection of your
principal investment. Now the returns have stopped coming and
Medical Capital has shut down amid allegations of fraud.
DON’T JUST BURY YOUR HEAD.
CALL US NOW.
You may have been told that Medical Capital would use your invested funds to buy safe medical receivables at a discount, collect the full amount owed, and share its profit with investors. You may have been misled with other statements about how safe and secure an investment in Medical Capital would be. But here are some things you were NOT told:
• Medical Capital’s CEO, Sidney M. Field, was a shady character who had owned and controlled automobile insurance companies until insurance regulators forced him from the industry, accusing him of engaging in sleazy and deceptive practices.
• Field had been stripped of his insurance license and twice sued by the State of California, charged among other things, with engaging in racketeering and fraud.
• Field’s company, GFS, allegedly engaged in a deceptive practice known as "sliming," altering accident records and falsifying information so bad drivers could qualify for insurance, and also allegedly duped customers into paying interest rates of 21 percent to 40 percent when they financed their premiums.
• Field, who paid a six-figure amount to settle the state’s claims, put both himself and his insurance companies into bankruptcy.
• Field had been stripped of his insurance license and twice sued by the State of California, charged among other things, with engaging in racketeering and fraud.
• Field’s company, GFS, allegedly engaged in a deceptive practice known as "sliming," altering accident records and falsifying information so bad drivers could qualify for insurance, and also allegedly duped customers into paying interest rates of 21 percent to 40 percent when they financed their premiums.
• Field, who paid a six-figure amount to settle the state’s claims, put both himself and his insurance companies into bankruptcy.
There were also problems with the very structure of the Medical Capital Investments, starting with Medical Provider Funding III. Securities America was aware of the following risks, but made the conscious decision not to share them with you when you were presented with the investment:
- There was no sinking fund for the payment of the notes. Nor was MPFC required to maintain any particular financial ratios to better ensure the future repayment of your Note.
- MPFC III could invest up to $50 Million in equity securities of all types of businesses and make mortgage loans to receivables sellers or other parties in the health care industry, outside of the Medical Capital core expertise.
- There were no independent directors, even though there were related and conflicted transactions and contractual relationships by and among MPFC III, MCC, MCH and MediTrack.
- Medical Capital's principals - Field and Lampariello - did not agree to personally certify monthly net collateral coverage, and did not agree to offer individual indemnity directly to the noteholders.
- The trustee's role was weakened, as evidenced by a diluted Note Agreement with Wells. The new agreement had a lack of a disbursing agent function, a higher 50% threshold for noteholders to enforce remedies, and a general lack of responsibility and oversight that had been incorporated in prior offerings.
- Even as Medical Capital grew, there were no audited financial statements. MedCap continued to use a local CPA firm instead of a national one.
- MPFC III could buy receivables that were aged more than 180 days, which was inconsistent with MCC's alleged prior approach of buying higher quality receivables that would turn every 90 days.
All of this information was readily available to Securities America and Cedar Brook before they sold Medical Capital investments. If they didn’t know, they should have. Now that Sidney Field and his crony, chief operating officer/president Joey Lampariello, are accused of defrauding Medical Capital’s investors, don’t you think you should have been told?
Hermann, Cahn & Schneider’s investor rights group - stockmarketloss.com - is currently building cases for people who have lost money in the Medical Provider Funding Corp. investments. If you have lost money with these Medical Capital investments, we’ll conduct an initial review of your claim without cost or obligation to you. If you have a right to obtain compensation, we’ll pursue recovery on your behalf on a contingent fee basis. In other words, if you don’t win, you don’t pay a penny of attorneys’ fees.
To learn more about us, click here. Or call us today, toll free at 888-990-9396. Ask for Tony Hartman, Hugh Berkson, or Jay Salamon. We’ll listen, review the facts and any documents you provide, and tell you if we think we can help - all without cost to you.
Hermann, Cahn & Schneider’s investor rights group - stockmarketloss.com - is currently building cases for people who have lost money in the Medical Provider Funding Corp. investments. If you have lost money with these Medical Capital investments, we’ll conduct an initial review of your claim without cost or obligation to you. If you have a right to obtain compensation, we’ll pursue recovery on your behalf on a contingent fee basis. In other words, if you don’t win, you don’t pay a penny of attorneys’ fees.
To learn more about us, click here. Or call us today, toll free at 888-990-9396. Ask for Tony Hartman, Hugh Berkson, or Jay Salamon. We’ll listen, review the facts and any documents you provide, and tell you if we think we can help - all without cost to you.
