The Securities and Exchange Commission (SEC) has amended its complaint against Orange County Medical Receivables Company Medical Capital Holdings. The amended complaint alleges that, in addition to the previous charges, Medical Capital docketed fake, inflated, and valueless billings/receivables. They then used these forgeries as justification in charging clients millions of dollars in fraudulent fees.
The amended complaint also alleges that Medical Capital used money from new investors to pay off old investors. The amended allegations provide a picture of purported fraud that is far more organized than previously thought.
The new charges could prove to be detrimental to Medical Capital’s top executives, Sidney Field and Joseph Lampariello. The SEC is hoping that the court will order Field and Lampariello to disgorge profits made from the scheme.
For more information of Medical Capital, please click on the link in the list of topics to the right.
No comments:
Post a Comment