Medical Capital Holdings, Inc. is a medical receivables financial company that operated through Medical Capital Corporation, to administer several Special Purpose Corporations, including Medical Provider Funding Corporation VI. Between 2003 and 2009, Medical Capital Holdings, Inc., Medical Capital Corporation, and Medical Provider Funding Corporation VI (collectively referred to as “Medical Capital”) sold approximately $2 billion in private notes to investors through independent broker-dealers, such as Securities America Inc. and Hantz Financial Services Inc. Reportedly, certain investors were told that the proceeds from the sale of the notes would be used to purchase accounts receivable, pay sales commissions, and provide general operating funds to Medical Capital. In July 2009, the Securities and Exchange Commission investigated and charged Medical Capital’s former chief executive, Sidney Field, and former president Joseph J. Lampariello, with fraud regarding the offering of notes, specifically with the notes in Medical Provider Funding Corp. VI. As a result of the SEC’s securities enforcement action, investors commenced lawsuits, including class actions, against their broker-dealers for their involvement in the fraudulent sale of these notes. Many of these independent broker-dealers have subsequently gone out of business due to the immense legal fees and costs associated with the investor lawsuits. One broker-dealer, however, Hantz Financial Services Inc., is still defending against a putative class action filed on behalf of investors who were sold the Medical Capital notes through Hantz Financial Services Inc. It is believed that Hantz Financial Services Inc. sold Medical Capital notes to over 300 clients which may have resulted in combined damages of over $20 million. The judge presiding over this putative class action will soon render an order regarding class certification. If you have suffered losses from investments with Hantz Financial Services Inc. and/or Medical Capital, or any other investment adviser firm or brokerage firm, and believe that you are a victim of sales practice abuses, please contact Lax & Neville LLP for a consultation at (212) 696-1999. Our firm has extensive experience and knowledge representing victims of investment fraud nationwide.
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