SEC Fraud Claims Against Medical Capital Execs Nixed

Law360, New York (February 25, 2010, 2:15 PM EST) -- A federal judge has dismissed the claims against two defendants in the U.S. Securities and Exchange Commission's lawsuit alleging health care provider financing firm Medical Capital Holdings Inc. misappropriated investor funds.

In an order filed Wednesday, Judge David O. Carter of the U.S. District Court for the Central District of California dismissed allegations against former company honchos Sidney M. Field and Joseph J. Lampariello. However, the judge gave the SEC 20 days to amend its complaint if it so wishes.

In July 2009 the commission sued...
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