April 23, 2012 Comments (0) Blog, Securities Fraud

Recovery of RMC Medstone Capital Promissory Note Losses

(Last Updated On: July 17, 2015)

Have you suffered investment losses in a RMC Medstone Capital promissory note?  If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

In September of 2011, RMC Medstone Capital investors apparently received a Notice of Default advising them that their investments are now worthless. RMC Medstone Capital issued approximately $18 million of these promissory notes and now these investors are looking at avenues of recovery.

The White Law Group is investigating the liability that brokerage firms and financial professionals who sold the RMC Medstone Capital promissory notes may have.

Brokerage firms and financial advisors have a fiduciary duty to their clients to perform due diligence on any investment prior to recommending it for sale and to ensure that the investment is appropriate in light of the client’s  age, investment experience, net worth and investment objectives.

Based on what is now known about RMC Medstone Capital, it appears that the broker-dealers and financial professionals that sold the RMC Mesdstone Capital promissory notes will be unable to demonstrate that they performed the required due diligence.

The firm is specifically looking at recovery options for investors in RMC Medstone Capital V and VI promissory notes.  Apparently, both the RMC Medstone Capital V and VI notes were sold to the public under the Regulation D exemption for private offerings (Reg D exemptions apply to certain private offerings and exempt investments from the typical SEC filing requirements).    Unfortunately, Reg D can also make it easier for unsuitable investments to be marketed and sold to the public.  Such investments also generally pay a higher commission to the broker selling them than the usual mutual bond or bond.  This attracts advisors that are more interested in maximizing commissions than they are in picking investments that are in the best interests of their clients.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a RMC Medstone Capital promissory note, please contact the securities attorneys of The White Law Group at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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