U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Medical Capital Holdings, Inc., et al.

On August 3, 2009, the SEC obtained a temporary restraining order and asset freeze to halt an ongoing offering fraud allegedly perpetrated by Sidney M. Field and Joseph J. Lampariello and their companies, Medical Capital Holdings, Inc., Medical Capital Corporation (MCC) and Medical Provider Funding Corporation VI (MP VI).

According to the complaint, the defendants defrauded investors by misappropriating approximately $18.5 million of the $76.9 million raised through the sale of MP VI notes to pay administrative fees to MCC. The SEC alleges that these fee payments were contrary to representations in MP VI's original offering documents, which stated that administrative fees would not be paid out of proceeds from the sale of notes, and contrary to representations in MP VI's supplemental offering documents that less than $4 million had been used for purposes other than purchasing accounts receivables. The SEC also alleges that the defendants misrepresented that no prior offerings had defaulted on or been late in making payments to investors of principal and/or interest.

For more information about the SECís action, you can read Litigation Release No. 21141 (July 20, 2009) and 21165 (Aug.3, 2009).

The Court also appointed Thomas Seaman as Receiver. For the latest information about the Receivership, you can visit the Receiverís website.


Modified: 09/08/2009