Possible Securities Fraud Involving Securities America and Solicitation of Investments in Medical Capital

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) June 8, 2010 -- The White Law Group is investigating a securities fraud claim on behalf of an investor involving a recommendation made by Securities America to invest in Medical Capital.

In 2009, Tustin, Calif.-based Medical Capital was charged by the Securities and Exchange Commission with fraud in the sale of $77 million of privately placed notes.

The SEC alleged that $18.5 million of the proceeds were illegally used by Medical Capital to cover administrative costs.

In March 2010, federal prosecutors launched a criminal investigation into two executives with ties to Medical Capital Holdings: Medical Capital CEO Sidney M. Field and President Joseph J. “Joey” Lampariello. Both Field and Lampariello were sued by the SEC in August 2009 for securities fraud.

A number of broker/dealers that sold Medical Capital investments also are facing regulatory scrutiny and lawsuits. At the top of the list is Securities America, which was sued in January 2010 by the Commonwealth of Massachusetts. At the top of the list is Securities America, which was sued in January 2010 by the Commonwealth of Massachusetts. According to the complaint, a number of Securities America reps allegedly misled investors about investments in Medical Capital and failed to disclose the risks associated with the investments.

The Massachusetts lawsuit further alleges that between 2003 and 2008, a group of Securities America executives repeatedly failed to heed the warning of an outside due-diligence analyst regarding the risks of the Medical Capital investments.

One Securities America rep facing legal troubles is William Glubiak, who’s been named in a $7.7 million complaint from about 24 households of investors who purchased investments in Medical Capital Holdings.

Another leading Securities America adviser involved in litigation connected to Medical Capital is Paula Dorion-Gray. In November 2009, Dorion-Gray was cited in a $254,000 complaint.

If you have any information that may assist us in our investigation of Securities America and Medical Capital, please contact us at 312-238-9650. In addition, to the extent that any Medical Capital sales occurred through misrepresentations or omissions, or because of a failure of the salesperson to conduct “due diligence,” investors may have claims against the salesperson and the brokerage firm involved.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

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