FINRA Rules In Favor Investor Over Securities America, Medical Capital Claim
The new year has not been kind to Securities America. On New Year’s Eve, an arbitration panel of the Financial Industry Regulatory Authority (FINRA) awarded almost $1.2 million in damages and legal fees to an investor who sued the broker/dealer and one of its reps over sales of private placements in Medical Capital Holdings.
As reported Jan. 3 by Investment News, the award includes compensatory damages of $734,000 and punitive damages of $250,000, plus attorney and expert witness fees of $171,000.
The Securities America broker cited in the award is Randall Ray Talbott. According to FINRA’s Broker Check Web site, Talbott has 11 other pending customer disputes involving sales of Medical Capital private placements.
Securities America also faces the possibility of more payouts to clients in the future. The securities divisions of Massachusetts and Montana have both filed fraud charges against the firm in connection to Medical Capital.
In July 2009, the Securities and Exchange Commission (SEC) charged Medical Capital Holdings and related subsidiaries with fraud. The company is now in receivership. One of the largest sellers of Medical Capital notes is Securities America, with some 400 brokers responsible for selling almost $700 million of the products.
Securities America has about 1,900 reps and advisers; it is owned by Ameriprise Financial Inc.
If you suffered investment losses in Medical Capital notes sold by a Securities America representative, please contact us. A member of our securities fraud team will help you determine if there is a viable claim for recovery.