Ajamie and Other Law Firms Recover $70 Million for Investors

Dec 2011

Ajamie LLP, working with several other firms, recovered a $70 Million settlement from Securities America, Inc., the broker-dealer subsidiary of Ameriprise Financial, Inc. Securities America sold notes for a company called Medical Capital. Medical Capital claimed it would use the money to purchase receivables from medical providers, but in reality Medical Capital was a Ponzi scheme, and used investor money for unrelated purposes and to enrich company executives. Securities America originally sought court approval for a settlement which would have paid investors roughly 5 cents on the dollar, and would have foreclosed investors’ rights to arbitration hearings. The efforts of Ajamie LLP and the other law firms working for the investors substantially improved the settlement by bringing it to close to 50 cents on the dollar – primarily by compelling the corporate parent of Securities America, Ameriprise Financial, to make a significant contribution to the settlement fund.