The Receiver's February Report
13/02/10 10:00
Thomas Seaman, Receiver for the Medical Capital companies, just filed his February report. His investigation of MedCap’s operations are ongoing, and his opinions aren’t getting any better. A few key quotes from his report illustrate the nature of the MedCap investment:
The Receiver’s conclusion that investors were paid using monies raised from new investors reveals what we would commonly call a Ponzi scheme. This is the sort of thing one would expect to have been revealed had audited financials been obtained. According to documents released by the State of Massachusetts, Securities America knew there were no audited financials, thought that was a cause for concern and was told that investors should have been put on notice of the issue.
Were you made aware of the lack of audited financials? Did you know about Sid Field’s background? Did you know investors were being paid thanks to monies raised from new investors? If this isn't how you expected your Medical Capital investment to work, call us at 888 999 9396, or send an email.
If you would like to read older posts, please click on the archive links to the right. To return to this entry, hit the “back” button on your browser.
- “[I]t is the Receiver’s opinion that Medical Capital’s loan portfolio is comprised of loans made to high risk borrowers and secured by very risky assets. In fact, there are very few performing loans, and even some of these are severely impaired.”
- “Medical Capital’s lending activities were unprofitable and resulted in losses in excess of $316 million since the creation of MPFC I, which is the only MPFC that generated a profit from money lending and investing activity.
- “Medical Capital requested and received administrative fees in excess of $323 million”
- “Medical Capital transferred loans and other assets purportedly valued at just under $1 billion between the eight money raising MPFCs, which facilitated the payment of earlier investors’ principal from new investors’ funds.”
The Receiver’s conclusion that investors were paid using monies raised from new investors reveals what we would commonly call a Ponzi scheme. This is the sort of thing one would expect to have been revealed had audited financials been obtained. According to documents released by the State of Massachusetts, Securities America knew there were no audited financials, thought that was a cause for concern and was told that investors should have been put on notice of the issue.
Were you made aware of the lack of audited financials? Did you know about Sid Field’s background? Did you know investors were being paid thanks to monies raised from new investors? If this isn't how you expected your Medical Capital investment to work, call us at 888 999 9396, or send an email.
If you would like to read older posts, please click on the archive links to the right. To return to this entry, hit the “back” button on your browser.