Did you lose money investing in Medical Provider Financial Corporation 1?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Medical Provider Financial Corporation 1 at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Update, June 20, 2016: MCH’s former president and COO was sentenced to 121 months in federal prison and ordered to pay nearly $40 million in restitution for running a Ponzi scheme, defrauding approximately 700 investors out of nearly $50 million. He pleaded guilty to one felony count of wire fraud and one misdemeanor count of willfully failing to file a tax return.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Medical Capital Holdings, Inc.
According to the SEC, Medical Capital Holdings, Inc. (MCH) provides financing to healthcare providers by purchasing their accounts receivable and making secured loans to them through its various operating subsidiaries and Special Purpose Corporations. MCH raises money from investors through the special purpose corporations to fund its financing activities. It then uses its subsidiaries to underwrite, monitor, administer, and services its financing activities. Sidney Field was the CEO and director of MCH and its subsidiaries. Joseph Lampariello was president, COO, and director of MCH and its subsidiaries. MCH is not registered with the SEC and the California Department of Corporations issued a Desist and Refrain Order to prohibit it from further offers or sales of securities in the state.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Medical Capital Corporation
According to the SEC, Medical Capital Corporation (MCC) is a subsidiary of MCH and is the administrator of each of MCH’s special purpose corporations. It provides management, underwriting, and administrative services (e.g. bookkeeping, accounting, payroll) to the special purpose corporations, including administration of all investor promissory notes and interest payments.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Medical Provider Financial Corporation I
According to the SEC, Medical Provider Financial Corporation I (MP I), a wholly owned special purpose corporation of MCH, was formed in September 2003 and conducted note offerings from December 2003 to August 2007. MP I and MCH’s other special purpose corporations sold notes through broker dealers under SEC Rule 506 of Regulation D. It issued approximately 3,821 notes to investors, raising approximately $554.9 million.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
SEC Complaint
On July 16, 2009, the SEC filed a complaint against MCH, MCC, Medical Provider Funding Corporation VI, Sidney Field, and Joseph Lampariello in federal court. In the Complaint, the SEC alleged that the Defendants committed fraud in the offer and sale of Medical Provider Funding Corporation VI notes and that the Defendants misappropriated approximately $18.5 million, among others.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
MCH’s Other Offerings
Medical Provider Financial Corporation II
Medical Provider Financial Corporation III
Medical Provider Financial Corporation IV
Medical Provider Financial Corporation V
Medical Provider Funding Corporation VI
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Medical Provider Financial Corporation 1, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Medical Provider Financial Corporation 1 and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.