In the Matter of Securities America

Complaint by the Mass. Secretary State against Securities America


The Massachusetts Secretary of State charged Securities America, a broker owned by Ameriprise Financial Inc., with selling $697 million in investments without fully warning investors about the risks involved.

The promissory notes were issued by companies owned by Medical Capital Holdings Inc., which ended up defaulting on $1 billion in obligations in August 2008.

Secretary of State William F. Galvin said Medical Capital paid Securities America $26 million in compensation and funded trips for Securities America executives, including vacations at Las Vegas resorts and golfing outings to Pebble Beach in California.

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Reference Info:Pleadings | State, 1st Circuit, Massachusetts | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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