BEVERLY HILLS, Calif., Sept. 10, 2009 (GLOBE NEWSWIRE) -- Aidikoff, Uhl & Bakhtiari (www.securitiesarbitration.com) announces an investigation of Medical Capital, Provident Royalties and Shale Royalties on behalf of investors. The law firm has been contacted by investors and currently represents numerous investors with FINRA arbitration claims against broker dealers for losses incurred based on the recommendation to purchase Medical Capital, Provident Royalties and Shale Royalties investments.
The individual brokers and individual advisors who sold Medical Capital and/or Provident Royalties and Shale Royalties are not targets of our investigation.
Medical Capital Corporation and Medical Provider Funding Corporation VI raised more than $2.2 billion through the offering of notes in Medical Provider Funding Corp VI and earlier special purpose entity offerings.
On August 3, 2009 the Securities and Exchange Commission (SEC) sought emergency relief. The SEC has alleged that investors were defrauded among other things, by Medical Capital's misappropriation of approximately $18.5 million of the $76.9 million raised through the sale of MP VI notes to pay administrative fees to MCC.
On July 1, 2009 the SEC filed a complaint against Provident Royalties, LLC and it's related entities and founders. Provident raised approximately $485 million from more than 7,000 investors. In raising money, the SEC has alleged that investor funds were diverted to pay earlier investor "dividends" and commingled investor funds.
"It appears that both Medical Capital and in some cases Provident Royalties related entities were sold to the same investors," stated attorney Philip M. Aidikoff. "We have expanded the scope of our investigation to address issues raised by investors in Provident Royalties and Shale Royalties."
"We are investigating claims for customers of Securities America, National Securities, American Portfolio Financial Services and other broker dealers," stated attorney Ryan K. Bakhtiari. "Brokerage firms owe a duty to conduct proper due diligence of investments before they approve the recommendation of them to their clients. We believe that clients of brokerage firms may have recourse."
Aidikoff, Uhl & Bakhtiari represents retail and institutional investors located around the world in securities arbitration and litigation matters. More information is available at www.securitiesarbitration.com or by contacting an attorney below.