6/14/2010

Assets Recovered by SEC Receiver for Medical Capital Fall Far Short of Investor Losses

On June 10, 2010, the court-appointed SEC receiver for the Medical Capital investment fraud filed his eleventh monthly status report. Through May 31, 2010, the Receiver has collected slightly more than $100 million in cash for the Medical Capital estate. This represents less than $2 million in additional cash recovery over the past month, reflecting a distinct slow down in the pace at which the receiver is recovering money. Medical Capital investors still are owed nearly $1.1 billion. And given the amount of cash that the SEC receiver has been able to recover to date, it appears that investors likely will lose approximately $1 billion.

Approximately $10.5 million of the monies that the receiver has recovered has been used to pay operating expenses and nearly $1 million has been used to pay professional fees associated with the receivership. As such, only approximately $89.5 million of the $100 million collected presently is available to be distributed to Medical Capital investors. While additional cash is expected to be recovered, the projected amounts are not substantial relative to the total size of Medical Capital investor losses.

The box office receipts for the movie "The Perfect Game" continue to fall below projections and the receiver does not expect that a profit will be realized from theater ticket sales. This movie, which Medical Capital paid to produce, is but one of the many allegedly improper expenditures that Medical Capital made that were wholly unrelated to medical receivables.

The receiver's recent report continues to maintain that Medical Capital was a Ponzi scheme and that millions of dollars of medical receivables that allegedly were underlying the Medical Capital notes either were wildly overvalued or did not exist at all. In other words, it remains apparent that Medical Capital notes were fraudulent. Dimond Kaplan & Rothstein, P.A. continues to prosecute numerous FINRA arbitration claims against the brokerage firms that sold these fraudulent investments. These brokerage firms include Securities America and QA3 Financial. Our claims against the brokerage firms are based largely on the grounds that the brokerage firm failed to conduct appropriate due diligence before approving and selling Medical Capital notes to investors.

Share This Story

Share your experience with investment fraud, and contribute to a community dedicated to protection and empowerment. Together, we can unveil strategies, share insights, and build a shield against financial deceit.

Let’s Discuss Your Case Today

When fighting for your rights, you may go up against some dangerous enemies. You want an attorney flying by your side to help navigate you through the twists and turns of the legal system. 

I Want To...
No Recovery, No Fees (888) 578-6255

Subscribe to our email!

Locations
Subscribe to our email!

Subscribe to our email!

uploadmagnifiercross linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram