Press Releases

Notice to All Securities America Investors in Medical Capital Notes from the Securities Law Firm of Tramont Guerra & Nunez, PA

Coral Gables, Florida (Vocus/PRWEB) January 7, 2011 - The Securities Law Firm of Tramont Guerra & Nunez, PA (TGN) makes an announcement to all Securities America investors in Medical Capital Notes concerning the class action lawsuit (Case No. 09-cv-1084) filed on September 18, 2009, in the United States District Court, Central District of California. The class action names Securities America, Inc. among others, as a defendant, and alleges violations of Sections 12(a)(1) and 12(a)(2) of the Securities Act of 1933 ("the Act"). In selling unregistered Medical Capital Notes, the defendants were required by the Act to sell only to accredited investors. The first count of the class action alleges that Securities America, and others, violated the Act by selling an unregistered Medical Capital Notes security to non-accredited investors. In support thereof, the class action alleges that defendants were responsible for the distribution of Medical Capital Notes literature to the general public and the solicitation of various unaccredited investors, via invitational seminars open to the public. Count two of the class action alleges a violation of Section 12(a)(2). The alleged violation was due to the fact that the Private Placement Memorandums ("PPMs"), which the lawsuit alleges constituted a prospectus within the meaning of Section 12 of the Securities Act, contained, among other things, "untrue statements of material fact and omitted other material facts concerning the use to which investor funds would be put." This information, according to the class action, was essential to make the statements in the PPMs not misleading. In connection with the second count, the class action asserts the defendant's owed the Plaintiffs the duty to make a "reasonable and diligent" inquiry to ascertain whether the information contained in the PPMs was accurate. TGN urges investors in Medical Capital Notes to consider what recourse is available to recover their investment losses from recommendations made by Securities America. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry's conduct and safeguard the investing public.

Since the filing of the class action, state regulators from Massachusetts and Montana have filed actions against Securities America as the result of their investigations. In January 2010, Massachusetts' Securities Division filed a Complaint against Securities America relating to its sales of Medical Capital Notes. Massachusetts alleged that Securities America ignored their own due diligence analysts and sold Medical Capital Notes to unsophisticated investors without telling them about the risks involved. In August of 2010, Montana's Commissioner of Securities filed a Notice of Proposed Agency Disciplinary Action against Securities America relating to its sales of Medical Capital Notes. According to the Notice, Securities America "withheld material information regarding heightened risks" from its registered representatives and their clients concerning Medical Capital Notes. Montana's Commissioner of Securities also alleged that Securities America "concealed these risks" from its brokers and their clients.

According to TGN, financial advisors told many investors that Medical Capital Notes were suitable investments for current income investment objectives. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning fixed income investments. Brokerage firms are required to supervise the activities in brokerage accounts, losses may be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations of unsuitable investments and the failure to conduct adequate due diligence concerning recommendations are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.

The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell "AV" rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.

Contact:
Ben Fernandez, Esquire
255 Alhambra Circle, Suite 1150
Coral Gables, Florida 33134
(800) 578-0137

ben@rtgn-law.com
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