FORT LAUDERDALE, Fla., Aug. 31, 2010 (GLOBE NEWSWIRE) -- The Law Firm of David R. Chase, P.A., , representing Medical Capital and Provident Royalties investors nationwide and headed by former SEC Prosecutor, David R. Chase, announces that it is has filed a FINRA arbitration claim against Securities America on behalf of a family trust seeking to recover approximately $800,000 in collective losses in Medical Capital and Provident Royalties investments. The claim also seeks to recover losses of approximately $300,000 from real estate based investments in IMH Secured Loan Fund, LLC and Inland American Real Estate Trust, Inc.
The arbitration claim alleges that Securities America fundamentally misrepresented the true nature and risks of the Medical Capital and Provident Royalty investments, that it failed to perform adequate due diligence before approving these investments for sale and that it failed to timely react to numerous red flags. The claim also alleges that Securities America "dangerously over-concentrated" the family trust in "highly illiquid, risky and inappropriate alternative, private placement investments." The claim seeks to recover more than $1 million in investment losses, pre-judgment interest, attorney's fees and costs, punitive damages and other appropriate relief.
Recently, the Montana Office of the State Auditor for the Commissioner of Securities and Insurance alleged in an August 5, 2010 Order that Securities America and certain of its executives, including its Chief Executive James Nagengast, "withheld material information regarding the heightened risks" of the Medical Capital promissory notes it sold to Montana investors. This follows on another administrative action filed earlier this year by the Commonwealth of Massachusetts against Securities America, which alleged improper sales practices in connection with the sale of Medical Capital notes.
The Law Office of David R. Chase, P.A., based in Fort Lauderdale, Florida, represents investors nationwide in cases against the major Wall Street Firms. The Firm's principal, David R. Chase, has been practicing for over 17 years, is AV-Rated by Martindale-Hubbell -- its highest competence and ethics rating -- and previously served as a SEC Prosecutor. More about the firm is available on its website at: .
If you or a family member suffered losses in Medical Capital or Provident Royalties and wish to discuss your legal rights, or you have information about this matter, please contact:
CONTACT: Law Office of David R. Chase, P.A 888-337-8625