According to reports, Hantz Financial is still contending with the fallout from Medical Capital, the $2.2 billion Ponzi scheme built on shaky medical receivable that the Securities and Exchange Commission shut down in July 2009. These reports indicate that Hantz Financial Services Inc. is still facing the potential of class action lawsuit over the sale of the notes and that a judge in Oakland County could soon decide on what could be a final attempt to certify the class of investors.
If the class is certified, it appears that the class has a little more than $20 million in combined damages against the firm.
Hantz Financial is a mid-sized brokerage firm based in Michigan that has 260 affiliated financial advisers.
It would appear that the class investors are attempting to hold Hantz Financial responsible for its due diligence requirements. Brokerage firms and financial advisors have a fiduciary duty to perform adequate due diligence on any investment they recommend and to ensure that such recommendations are appropriate for their client in light of that particular clients’ age, income, investment experience, investment objectives, and net worth.
Investors in Medical Capital could also attempt to recover their losses with a FINRA arbitration claim. The White Law Group has represented numerous Medical Capital investors in claims against the brokerage firm that recommended the investment.
To speak with a securities attorney experienced in Medical Capital related claims, please call The White Law Group at 312/239-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.