Medical Capital Corporation raised over $2.2 billion selling notes to investors. The funds were supposed to be used to buy and factor medical accounts receivable. Investors were to share in proceeds from interest income. It didn't work out very well, at least not for investors, and we now understand why. The executives of Medical Capital paid themselves excessive "administrative fees." They purchased a 118 foot yacht with investor money, and staffed it with a full time crew, also paid for by Medical Capital investors. The Medical Capital executives also cooked the books. It turns out that $548 million in receivables that were on the books were due from companies that had not existed in years. There was no chance that these debts would be paid to Medical Capital, but the investors were never told that.
The SEC filed a lawsuit and the court in that case has frozen the assets of Medical Capital and related companies. The court has also appointed a receiver, who is charged with gathering the assets of Medical Capital. The receiver's reports can be found at www.medicalcapitalreceivership.com. Unfortunately, it appears that the receiver will not be able to recover enough assets to make a meaningful distribution to the Medical Capital victims.
New facts are continuing to come to light. Investors may have valid claims to pursue against the brokerage firms that sold them Medical Capital notes if the investment was misrepresented. Fill out our confidential form for a Free Evaluation of your Medical Capital claim. Or call our office at 503-222-7475 and ask for Bob Banks or Kristen Wiljanen. If we determine that you have a good case against the brokerage firm that sold you the investment, we will offer to represent you on a contingency fee basis. You have nothing to lose and the recovery of your losses to gain.