The brokerage firm Securities America has been held liable in the first of what is expected to be dozens of securities arbitrations filed by investors who bought fraudulent securities representing interests in medical receivables offered by Medical Capital and other companies. A FINRA arbitration award was recently issued against Securities America for nearly $1.2 million in damages and legal fees in an arbitration case brought by an elderly investor who believed he was investing in safe securities.
Published reports point to dozens of brokerage firms that have sold Medical Capital securities. While Medical Capital is not the only firm alleged to have sold medical receivables under fraudulent circumstances, it was one of the largest, raising $2.2 billion between 2003 and 2008.
Medical Capital is now in bankruptcy. But, as the recent FINRA award shows, investors who purchased fraudulent medical receivable securities have the option to pursue brokers who sold these inappropriate investments. The investment fraud lawyers of Block & Landsman are currently pursuing claims involving fraudulent medical receivable securities. If you would like to consult with an investment fraud lawyer, please visit Block & Landsman's website.
