Securities America Slammed With $1.2 Million Award
An article in Investment News claims that Securities America, which is owned by Ameriprise Financial, will continue to be haunted by their involvement with the private placements it sold from Medical Capital Holdings, a bankrupt company that packaged medical receivables into promissory notes. In addition to the December 31st arbitration award against Securities America for nearly $1.2 million, the company is facing as many as 150 more claims over the next year or so. Furthermore, the panel’s award of $250,000 in punitive damages against the firm is an abundantly clear indication that the actions of Securities America were egregious, at least in the eyes of those three arbitrators. Although there were many independent broker-dealers involved in selling Medical Capital notes raising some $2.2 billion between 2003 and 2008, Securities America was by far the largest seller selling $700 million worth of the notes.
According to the article, Securities America could expect to pay millions of dollars to investors by way of adverse arbitration awards or settlements, plus huge legal fees for defending the cases, in addition to reaching settlements with various states for their part in the sale of private placements leading up to the market collapse in 2008.
If you have suffered losses in private placements such as Medical Capital promissory notes, please contact our securities law firm at 1-800-259-9010 for a confidential, no obligation consultation.