Stockbroker Charged With Fraud For Selling Med Cap Notes
Authorities in Colorado have criminally charged a former stockbroker, John Brady Guyette, with 9 counts of securities fraud in connection with his sale of Medical Capital notes. Medical Capital Holdings, Inc. (“Med Cap”), an alleged Ponzi scheme, raised approximately $2.2 billion from investors between 2003 and 2008. It is believed to be the first case of criminal fraud charges against a stockbroker in connection with Med Cap. The Securities and Exchange Commission (“SEC”) previously brought civil fraud claims against Med Cap and its founders, Sidney Field and Joseph Lampariello.
Guyette was affiliated with Community Bankers Securities, LLC prior to its closure in December 2009. Colorado revoked Guyette’s securities licenses in April 2010. At that time, securities regulators alleged that Guyette violated Regulation D by selling the Med Cap private placements to several investors with whom he did not have a substantial prior relationship. Guyette sold $1.3 million worth of Med Cap notes to 8 investors in 2008. At the heart of the charges against Guyette are the allegations that he sold Med Cap notes to investors after Med Cap began having trouble making payments to investors; and he told at least some of the investors that the Med Cap investment was “guaranteed safe.”
Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.