SOURCE: Klayman & Toskes

October 02, 2009 17:37 ET

The Securities Law Firm of Klayman & Toskes Files Arbitration Claim on Behalf of a Family Trust That Invested $250,000 in Medical Capital Notes

NEWPORT BEACH, CA--(Marketwire - October 2, 2009) - The Securities Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a securities arbitration claim against ValMark Securities, Inc. and Wealth Management & Business Concepts, Inc., on behalf of a family Trust, seeking to recover $250,000 which was invested in Medical Capital Notes. The Statement of Claim was filed with the Financial Industry Regulatory Authority ("FINRA").

According to the Trustees of the family Trust, in 2007 and 2008, a ValMark Securities financial advisor recommended that the Claimants invest $250,000 in two Medical Capital Notes: Medical Provider Financial Corporation IV and Medical Provider Funding Corporation V. However, the Trustees allege that the advisor, who was also President of Wealth Management & Business Concepts, failed to inform them of the speculative nature and risk that the Notes entailed. While the Trust's investment objectives did not allow for speculation, the financial advisor recommended a speculative, aggressive investment for the Trust. Further, the Statement of Claim alleges that ValMark Securities and Wealth Management & Business Concepts misrepresented the due diligence they performed on Medical Capital as well as the risk entailed in the Notes. Today, the Trust has no access to the principal investment made in the Medical Capital Notes, there are no payments being made on the Notes, and the Trust is unable to liquidate the Notes.

On July 16, 2009, the Securities and Exchange Commission ("SEC") filed fraud charges against Medical Capital Holdings in connection with the sale of $77 million of private securities. On the same day, FINRA issued a sweep notice to obtain information from several broker-dealers regarding the sale of Medical Capital securities. Since that time, K&T has been contacted by numerous Medical Capital investors who have sustained significant damages. According to Jahan K. Manasseh, an attorney at Klayman & Toskes, "While we have been contacted by numerous investors who lost money in Medical Capital Notes, we believe that we have only seen the tip of the iceberg. Many investors are in the dark and they don't know their legal rights and options. We are continuing our investigation regarding the sale of Medical Capital Notes and anticipate filing additional securities arbitration claims in the coming weeks."

Retail and institutional investors who purchased Medical Capital securities from a full-service brokerage firm and sustained significant losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you have information relating to this announcement or have investment losses of $200,000 or more in Medical Capital Notes, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at http://www.nasd-law.com.

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956
    http://www.nasd-law.com