Securities America Sued Over $2B Med Cap Fraud

Law360, New York (March 23, 2010, 2:21 PM EDT) -- A putative class of investors has sued broker-dealer Securities America Inc. for allegedly selling $700 million in promissory notes issued by entities of Medical Capital Holdings Inc. despite warnings from due diligence advisers that MCHI was operating a massive Ponzi scheme.

The suit, lodged Thursday in the U.S. District Court for the District of Nebraska, follows a U.S. Securities and Exchange Commission complaint against MCHI and its subsidiaries in July 2009 and related actions in Nebraska and Massachusetts against Securities America, a wholly owned subsidiary of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.