Suit Targets Broker-Dealer Over $2B Ponzi Scheme

Law360, New York (October 2, 2009, 11:58 AM EDT) -- An investor has launched a putative class action accusing broker-dealer Securities America Inc. of failing to perform due diligence on hundreds of millions of dollars in notes sold for a medical receivables company, which turned out to be a $2 billion Ponzi scheme that “brought down the wrath of” the U.S. Securities and Exchange Commission.

Ilene Grossbard filed her suit in the U.S. District Court for the District of Nebraska on Thursday on behalf of all SA investors who bought Medical Provider Financial Corp. V securities...
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