Finra sweeping B-Ds that sold private securities from Medical Capital Holdings

Finra is conducting a sweep to gather information from a number of broker-dealers that sold private securities of Medical Capital Holdings Inc., which the Securities and Exchange Commission last week charged with securities fraud.
JUL 20, 2009
The Financial Industry Regulatory Authority Inc. is conducting a sweep to gather information from a number of broker-dealers that sold private securities of Medical Capital Holdings Inc., which the Securities and Exchange Commission last week charged with securities fraud. Medical Capital is a medical receivables firm based in Anaheim, Calif. On Thursday, the SEC charged the firm with fraud in the sale of $77 million in notes. The commission also brought charges against the firm's chief executive, Sidney Field, and its president and chief operating officer, Joseph Lampariello. According to the SEC's complaint, Medical Capital's problems could be far greater. Since last August, five of the firm's funds and affiliates have been in default or late in payments of principal or interest of $992.5 million in notes, commonly called private placements. Finra of New York and Washington sent an unknown number of broker-dealers the sweep notice the same day that the SEC filed charges against Medical Capital.

Latest News

Why fixed income still belongs in your clients' portfolios
Why fixed income still belongs in your clients' portfolios

In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.

Voya expands advisor managed accounts to add private market assets
Voya expands advisor managed accounts to add private market assets

Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.

With executives leaving, Osaic’s Reid now in the spotlight
With executives leaving, Osaic’s Reid now in the spotlight

Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.

Investors sue crypto fund and platform, alleging $1.5 million never returned
Investors sue crypto fund and platform, alleging $1.5 million never returned

Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch

Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL
Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL

The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.