Firm Nailed In A Medical Capital Private Placement Case
A Colorado FINRA arbitration panel awarded Patricia and Brian Casson $764,000 in damages against Community Bankers Securities LLC (CBS) for their investments in Medical Provider Funding Corporation VI (“MP6”), one of the Medical Capital Holdings investments. This was just another risky private placement of Medical Capital Holdings that was packaged and sold to investors as a safe and secure investment with minimal risk. The investment which is now worthless had some 60% of its assets tied up in medical receivables or payable, while the other 40% or so was invested in other high risk investments. In addition to the compensatory damages awarded of $712,000, CBS was ordered to pay $40,000 in attorneys’ fees, interest at the rate of 8% and the entire $12,000 in forum fees of the arbitration. Our investigations into these cases has revealed that brokerage firms marketed and sold these products to their retail customers without explaining the nature of the investment or the full extent of the risks involved by owning them.
According to the award, Community Bankers Securities only attended the first two days of the hearing and FINRA records indicate that it is no longer registered with FINRA since December 23, 2009. (FINRA# 09-06444; Patricia M. Casson and Brian J. Casson v. Community Bankers Securities LLC)
If you have suffered losses in Medical Capital Holdings, Medical Provider Funding Corporation VI (“MP6”) or other complicated private placements, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.