The former president of Medical Capital Holdings, Inc., was sentenced to 10 years in federal prison and ordered to pay nearly $40 million in restitution after being convicted of securities fraud. Joseph J. Lampariello, 62, had been accused of operating a Ponzi scheme for more than 6 years that snared hundreds of investors.
The scheme initially raised about $2.2B from investors through the sale of promissory notes that were issued to fund the company’s investment in novel medical devices. Instead, Lampariello diverted about $325 million in investor funds for his own use. An SEC lawsuit in 2009 unraveled the securities fraud scheme. Wells Fargo Bank NA and Bank of New York Mellon paid almost $220 million into the company’s receivership estate following investor lawsuits claiming that the banks had breached their fiduciary responsibilities to the investors by disbursing investor funds before thoroughly reviewing MedCap’s spending plan. Additional funds were repaid to the receiver by Sedgwick LLC and the company’s former executives.
An experienced securities fraud attorney
Securities fraud crimes are complex. Significant expertise is required both to prosecute and defend against these charges, largely because securities schemes are often very intricate. Robert Helfend is an experienced, aggressive securities fraud attorney who has practiced federal and state criminal defense exclusively for more than 30 years. He can assemble the experts you’ll need to help the judge and jury understand both your actions and how they relate to the charges against you.
Federal prosecutors aggressively pursue some fraud defendants because of the tendency of these cases to involve large dollar amounts. The large dollar amounts are often headline-grabbing, but the attention to the bottom line sometimes overshadows the facts of the case.
When you’re facing securities charges, you need a securities fraud attorney who can help the judge and jury focus on the facts of the case, and separate them from the alleged dollar figures involved. If you’re accused of fraud, don’t attempt to defend yourself and don’t rely on an inexperienced criminal defense attorney. Your best criminal defense strategy is to work with a securities fraud attorney who will work aggressively to defend your freedom.
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