Medical Capital executive gets 10-year sentence for private placement fraud
Joseph J. Lampariello also ordered to pay nearly $40 million in restitution
Jun 16, 2016 @ 4:21 pm | By Bruce Kelly | Investment News
A former top executive of Medical Capital Holdings Inc., a private placement-turned-Ponzi scheme that destroyed dozens of broker-dealers, is heading to prison.
Joseph J. Lampariello, 62, the one-time president and chief operating officer of Medical Capital Holdings, was sentenced on Monday to 10 years and one month in federal prison by U.S. district judge David O. Carter. In addition to the prison term, Mr. Lampariello was ordered to pay close to $40 million in restitution to investors who had lost millions of dollars.
Medical Capital Holdings was a medical receivables financing company that operated in southern California. Raising money through a network of independent broker-dealers, the company oversaw funds that were intended to purchase account receivables from accredited medical providers, make secured loans and provide money for general operating expenses.