Posts belonging to Category Securities America

SEC Receiver’s Plan is Unfair to Proactive Medical Capital Noteholders


In the Medical Capital Receiver case, the SEC Receiver recently filed the “Receiver’s Proposed Plan for Distribution” (the “Plan”) which contains some disturbing news for those investors who were pro-active and obtained recoveries against third-parties through litigation (including class actions) or arbitration. As proposed in the Plan (set forth on Page 14 section 4) the […]

Expert Contends that Brokerage Firms are Failing to Satisfy their Due Diligence Obligations.


Broker-dealers that sold billions of dollars in fraudulent private placements, such as Medical Capital and Provident Royalties notes, “failed massively in their due diligence responsibilities to investors” according to Gordon Yale, a CPA and expert witness in securities fraud cases. (See “Private-placement due diligence ‘sloppy,’” Investment News). They grossly misrepresented investigations into the investments and […]

Troubled Securities America is “For Sale”


Securities America is on the shopping block, according to an InvestmentNews article by Bruce Kelly entitled “Ameriprise shopping Securities America.” The firm was sued along with Ameriprise Financial by a class of people who purchased hundreds of millions of fraudulent securities issued by Medical Capital and Provident Royalties. Ameriprise Financial is the corporate parent of […]

Regulators Issue Sanctions Against Brokers for Misconduct in Private Offerings (Reg D Offerings)


InvestmentNews has reported that FINRA has issued the first in an anticipated series of sanctions against broker-dealers and executives of firms who sold private placements in two alleged Ponzi schemes. The actions were taken against Workman Securities Corp and Askar Corp for deficient investigation and due diligence associated with the sale of high risk investments.. […]

Judge Rejects Securities America’s Attempts to Settle Class Actions Involving Medical Capital Notes and Provident Royalties Securities


A federal judge has refused to approve a proposed class action settlement between Securities America and a class of people who purchased hundreds of millions of fraudulent securities issued by Medical Capital and Provident Royalties, that were sold by Securities America. See Dan Levine’s and Joseph Giannone’s article in Reuters captioned, “Judge rejects settlement with […]

Are Brokerage Firms Really the Trusted Financial Advisers that Their Advertisements Claim that They Are?


Expecting licensed professionals who provide investment advice to act in their clients’ best interests “should be a basic tenet of the business,” but brokerage firms and their brokers don’t want that fiduciary yoke, says Karen Blumenthal in her InvestmentNews article, “When Your Adviser Can’t Be Trusted.” Moreover, they don’t want the public to know that […]

Ameriprise and its Securities America Affiliate Seek to Use a Legal Loophole to Avoid Hundreds of Millions of Dollars in Legal Exposure


Securities America, Inc., the Ameriprise Financial affiliate that sold hundreds of millions of dollars of fraudulent private placements issued by Medical Capital Corp. and Provident Royalties LLC, is trying to force a class action settlement in connection with investors who purchased Medical Capital Notes though Securities America. The proposed settlement would protect millions of dollars […]

Wall Street Whistleblower Program Already Paying Off


The new whistleblower program that pays big cash rewards for tips about investment fraud has already resulted in a large number of high quality tips to the SEC, according to a news story this week on CNBC. According to the report, the SEC expects to receive 30,000 tips this year?just one year after the program […]

Securities America’s Medical Capital Notes “Nightmare” Continues


According to a recent article in InvestmentNews, Securities America faces 150 or so arbitration claims seeking recovery of $90 million of investor losses associated with its sale of Medical Capital Notes. The claims are shaping up to be a significant problem for Securities America and its parent company Ameriprise Financial, Inc. On New Year’s Eve, […]

Investor in Medical Capital Notes Recovers $1.2 Million from Securities America


On New Year’s Eve, Securities America was hit with a $1.2 million award as a result of its sale of Medical Capital Notes. The award included $734,000 in compensatory damages, $250,000 in punitive damages and $171,000 in attorney and expert fees. According to attorney H. Davis at Page Perry, a securities arbitration and litigation firm […]