Securities Arbitration Claim Filed By Retired Widow against Peak Securities Corp. for Losses in Medical Capital Notes Through Tramont Guerra & Nunez, PA

Retired widow files a securities arbitration claim with the Financial Industry Regulatory Authority against Peak Securities Corporation for investment losses in Medical Capital.

Coral Gables, FL (Vocus/PRWEB ) November 5, 2009 –- The Securities Law Firm of Tramont Guerra & Nunez, PA (TGN) announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-09-06218 against Peak Securities Corporation (Peak Securities) for investment losses in Medical Provider Financial Corporation IV Series I, Secured Notes (Notes) issued by Medical Capital Holdings, Inc. (MCH). The arbitration claim filed by a retired widow alleges that she was solicited through representations that the Notes were stable investments, suitable to generate current income for risk adverse investors. Furthermore, the claim alleges that there were sales practice violations with respect to the solicitation of the investments which included misrepresentations, failure to conduct adequate due diligence, securities concentration, failure to recommend suitable investments and failure to supervise investor qualifications related to Private Placements under Regulation D.

Under Regulation D, only accredited investors are eligible to invest in Private Placements which are unregistered securities under the 1933 Securities Act (Act). The arbitration claim alleges that Peak Securities' sale of the unregistered MCH securities did not comply with the requirements of the Act to sell only to accredited investors. As it pertains to natural persons, an accredited investor has been defined as: (a) a person with an individual net worth, or joint net worth with his or her spouse, of over $1 million at the time of purchase, or (b) a person whose individual income exceeds $200,000, or $300,000, jointly with his or her spouse, in the two years prior to the purchase at issue, together with a reasonable expectation of current income levels at the time of purchase. In this instance, the retired widow’s net worth and annual income were significantly below these thresholds

Investors should consider whether an individual securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) is a viable method to recover their investment losses. The brokerage firms who distributed the securities issued by MCH and its affiliated entities were obligated to conduct due diligence of facts concerning the risks associated with the investments. Financial advisors told many investors that these securities were suitable for current income investment objectives. Brokerage firms are obligated to give, and investors are entitled to rely upon brokerage firms for, competent, suitable investment advice in accordance with FINRA Rules and Regulations. Recommendations of unsuitable investments and/or failure to conduct adequate due diligence are both causes of action that form the basis for individual securities arbitration claims filed with FINRA.

The Securities Law Firm of Tramont Guerra & Núñez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to assist you in determining whether you have a viable individual claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Benjamin Fernandez, Esquire.

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