{"id":837,"date":"2011-02-22T22:49:47","date_gmt":"2011-02-22T22:49:47","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2011\/02\/texas_securities_fraud_thee_fi"},"modified":"2022-01-13T12:27:22","modified_gmt":"2022-01-13T18:27:22","slug":"texas-securities-fraud-thee-fi","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/","title":{"rendered":"Texas Securities Fraud: Three FINRA Cases Against Securities America Over Sale of Private Placements Halted"},"content":{"rendered":"

\t\t\t\tIn what Investment News<\/em> is describing as a legal victory for Securities America, a federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against the broker-dealer and its brokers. The cases will be combined with two class action. This will likely limit Securities America’s liability. Ameriprise Financial Inc. owns this brokerage firm.<\/p>\n

In the U.S. District Court for the Northern District of Texas, Judge W. Royal Furgeson, Jr. ordered the broker-dealer to set up a $21 million settlement fund for investors. The Texas securities fraud<\/a> claims involve the allegedly bogus sale of private placement notes from Provident Royalties LLC and Medical Capital Holdings Inc.<\/p>\n

A number of plaintiff’s attorneys have expressed dismay at Furgeson’s decision because they are worried that their clients won’t get as much from a class action case. Furgeson, however, says that combining the cases protects the financial recovery for all investors and not just those with FINRA arbitration claims.<\/p>\n

Per court documents, Securities America sold approximately $18 million of Provident shares and $700 million of Medical Capital notes. Some 20,000 investors purchased the Medical Capital notes from independent broker-dealers and approximately $2.2 billion was raised from the private placements. Unfortunately, many of the medical receivables believed to be underlying the notes never existed.<\/p>\n

Dozens of claimants, including the securities divisions of Massachusetts and Montana, have filed securities claims against Securities America. The financial firm, however, maintains that it did not engage in any wrongdoing when it sold the MediCap notes.<\/p>\n

Related Web Resources: <\/strong><\/p>\n

Securities America scores huge victory in Reg D case<\/a>, Investment News, February 18, 2011<\/p>\n

More Stockbroker Fraud Blog Posts: <\/strong><\/p>\n

Securities America Inc. to Pay $1.2M in Compensatory and Punitive Damages Over Allegedly Fraudulent Medical Capital Notes<\/a>, January 6, 2011<\/p>\n

FINRA Fines H & R Block Financial Advisors (Now Ameriprise Advisor Services) over Sales of Reverse Convertible Notes (RCN)<\/a>, February 17, 2010<\/p>\n

Securities America & Ameriprise Financial Inc. Sued For Selling Allegedly Faulty Private Settlements<\/a>, November 10, 2009 Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In what Investment News is describing as a legal victory for Securities America, a federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against the broker-dealer and its brokers. The cases will be combined with two class action. This will likely limit Securities America’s liability. Ameriprise Financial Inc. owns […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3791,3752,3829,3750],"tags":[],"class_list":["post-837","post","type-post","status-publish","format-standard","hentry","category-ameriprise-securities-america","category-financial-firms","category-securities-america","category-texas-securities-fraud"],"yoast_head":"\nThree FINRA Cases Against Securities America Over Sale of Private Placements Halted — Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"A federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against Securities America and its brokers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Three FINRA Cases Against Securities America Over Sale of Private Placements Halted — Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"A federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against Securities America and its brokers.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Three FINRA Cases Against Securities America Over Sale of Private Placements Halted — Investor Lawyers Blog","description":"A federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against Securities America and its brokers.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/","twitter_card":"summary_large_image","twitter_title":"Three FINRA Cases Against Securities America Over Sale of Private Placements Halted — Investor Lawyers Blog","twitter_description":"A federal judge in Dallas has placed a restraining order on three upcoming FINRA arbitration claims against Securities America and its brokers.","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Texas Securities Fraud: Three FINRA Cases Against Securities America Over Sale of Private Placements Halted","datePublished":"2011-02-22T22:49:47+00:00","dateModified":"2022-01-13T18:27:22+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-thee-fi\/"},"wordCount":352,"articleSection":["Ameriprise - 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