SEC vs. MEDICAL CAPITAL HOLDINGS, INC.; MEDICAL CAPITAL CORPORATION; MEDICAL PROVIDER FUNDING CORPORATION VI; SIDNEY M. FIELD; and JOSEPH J. LAMPARIELLO. Case No. SA CV09-0818 DOC(RNBx).
This website was last updated July 23, 2010. Welcome to the Medical Capital Receivership Website
This website has been established to facilitate efficient communications between note holders, creditors, former employees, and other interested parties and potential claimants of Medical Capital Holdings, all of its subsidiaries and affiliates, and Thomas Seaman who is serving as its permanent Receiver. Mr. Seaman was appointed on August 3, 2009 by the Honorable David O. Carter, Judge of the United States District Court in a securities fraud enforcement action brought by the Securities and Exchange Commission (the "Commission"). The Commission has alleged that the defendants violated federal securities laws. Judge Carter also ordered that the assets of Medical Capital be frozen and issued a Temporary Restraining Order (“TRO”).A copy of the Commission’s complaint, as well as the TRO and related orders may be found in the Case Documents. Judge Carter’s Minute Order, issued concurrently with the TRO, is also available for viewing.
If you wish to be notified by email of updates to the web site and other important announcements from the Receiver concerning this receivership, then please sign up by entering your email address above. A pop up screen will appear which will ask you to confirm acceptance of emails. An email will then be sent to you with a link to a simple form which will ask you for basic contact information. This information will only be used by the Receiver and will not be sold. You may unsubscribe from emails at any time by simply clicking on the Unsubscribe link which will be on the top and bottom of all emails sent to you by the Receiver.
MOST RECENT UPDATES:
RECEIVER’S SECOND FEE APPLICATION TO THE COURT; ATTORNEY'S FEE APPLICATIONS On July 21, 2010, the Receiver filed his SECOND INTERIM FEE APPLICATION OF THOMAS SEAMAN, RECEIVER with the Court. The fee application details work performed by the Receiver from November 1, 2009, through April 30, 2010. The Receiver and his staff worked 4,463.50 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court. The application is posted here with Exhibit A (posted in PART 1, PART 2, PART 3, PART 4, PART 5, and PART 6) which details all fees sorted by task. EXHIBIT B summarizes fees by timekeeper. EXHIBIT C summarizes fees by type of task performed. EXHIBIT D summarizes fees by asset type. The Receiver seeks an order to approve payment of 90% of the detailed fees of the Second Fee Application Period. Also filed is the NOTICE OF LODGING [PROPOSED] ORDER and the [PROPOSED} ORDER ON SECOND INTERIM FEE APPLICATION OF THOMAS SEAMAN, RECEIVER.
The hearing of these fee applications is set for August 23, 2010, at 8:30 a.m.
RECEIVER’S TWELFTH STATUS REPORT On July 12, 2010, the Receiver filed the RECEIVER'S TWELFTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of June 30, 2010.
RECEIVER’S ELEVENTH STATUS REPORT On June 10, 2010, the Receiver filed the RECEIVER'S ELEVENTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of May 31, 2010.
SOUTHWEST ATLANTA HOSPITAL; NOTICE OF SALE; REQUEST FOR OVERBIDS In the action pending in U.S. District Court for the Central District of California, Southern Division, Case No. SA CV09-0818 DOC (RNBx), Securities and Exchange Commission v. Medical Capital Holdings, Inc. et al., notice is hereby given pursuant to 28 U.S.C. § 2002 that the Court-appointed Receiver has contracted to sell the real property located at 501 Fairburn Road SW, Atlanta, Georgia, known as the Southwest Atlanta Medical Center, for the amount of $9,500,000. Sale subject to overbid and Court confirmation. Hearing currently set for June 21, 2009 at 8:30 a.m., courtroom of the Honorable David O. Carter, United States Courthouse, 411 West Fourth Street, Santa Ana, California. Minimum overbid is $11,000,000. Overbids must be received by 5:00 p.m. Pacific Standard Time, five days prior to the hearing by the Receiver at 3 Park Plaza, Suite 550, Irvine, California in order to be considered. If interested in submitting an overbid, please contact Doug Connell at (770) 552-2473 or at doug.connell@grubb-ellis.com for the form of Purchase and Sale Agreement and other information.
RECEIVER’S TENTH STATUS REPORT On May 10, 2010, the Receiver filed the RECEIVER'S TENTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of April 30, 2010.
THE PERFECT GAME RELEASED IN DOMESTIC THEATRES On April 17, 2010 The Perfect Game, a feature filmed owned by Medical Capital was released in U.S. theaters. Prior to the appointment of the receiver, Medical Capital invested just over $22 million in an entertainment company and the film. The film was essentially complete, however had not been released because Medical Capital had failed to secure funding for prints and advertising needed to distribute the film. A history of the status of the film and the Receiver’s efforts to preserve the asset can be found in the Receiver’s nine monthly reports filed with the Court and published on this website. The film has now been released domestically in the United States. In accordance with the Court’s orders, the Receiver was able to accomplish release of the film with no additional significant capital investment by the receivership entities. The Receiver’s team is doing everything possible to promote the film, including encouraging viewers of this website to see the movie and tell people they know about it. Viewers of this website who wish to see the film should follow this link for film reviews and a list of theatres showing the film. IHHI NOTE SALE On April 13, 2010 sale of the IHHI note was concluded at a sales price of $70,000,000. The total gross receipts recovered by the Receiver are now $97,831,054.99.
RECEIVER’S NINTH STATUS REPORT On April 12, 2010, the Receiver filed the RECEIVER’S NINTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of March 31, 2010.
RECEIVER’S FIRST FEE APPLICATION TO THE COURT; HEARING REMOVED FROM CALENDAR On March 30, 2010, Judge Carter issued a MINUTE ORDER ON MOTION FOR HEARING FOR FEE APPLICATIONS UNDER SUBMISSION and removed from the calendar the April 5, 2010 hearing for the first fee applications from the Receiver, the Receiver’s attorneys and the Receiver’s forensic computer specialists. The Court found the matters appropriate for decision without oral argument and will rule on the fee applications in chambers.
RECEIVER’S EIGHTH STATUS REPORT On March 10, 2010, the Receiver filed the RECEIVER'S EIGHTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of February 28, 2010.
RECEIVER’S FIRST FEE APPLICATION TO THE COURT On March 5, 2010, the Receiver filed his FIRST INTERIM FEE APPLICATION OF THOMAS SEAMAN, RECEIVER with the Court, posted here as Part 1, Part 2 and Part 3. The fee application details work performed by the Receiver since the inception of the case from July 16, 2009 through October 31, 2009, and seeks an order to authorize payment of 90% of the detailed fees. The Receiver and his staff worked 2,039.7 hours executing the duties set forth in the Temporary Restraining Order and Order Appointing Receiver and subsequent orders of the Court. Fees are listed by timekeeper, by type of task performed, and by asset type. Also filed is the [PROPOSED] ORDER ON FIRST INTERIM FEE APPLICATION OF THOMAS A. SEAMAN, RECEIVER.
The hearing of these fee applications is set for April 5, 2010, at 8:30 a.m. UPDATE: HEARING HAS BEEN REMOVED AND THE MATTER WILL BE RULED ON IN CHAMBERS.
FREQUENTLY ASKED QUESTIONS PAGE ADDED TO WEBSITE The Receiver has added a new page to this website for frequently asked questions. To read answers to frequently asked questions regarding this receivership and the role of the Receiver, please click on the FAQ tab above.
NEWPORT BEACH UNDEVELOPED LOT; SALE OF PROPERTY HAS CLOSED On February 18, 2010, the undeveloped parcel at 118 39th St., Newport Beach, CA, closed escrow and is no longer part of the receivership estate.
RECEIVER’S SEVENTH STATUS REPORT On February 10, 2010, the Receiver filed the RECEIVER'S SEVENTH REPORT TO THE COURT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of January 31, 2010.
"THE PERFECT GAME": ORDER GRANTING RECEIVER'S EX PARTE APPLICATION FOR ORDER APPROVING DISTRIBUTION AGREEMENT On Jan. 25, 2010, Judge Carter issued an ORDER GRANTING RECEIVER'S EX PARTE APPLICATION FOR ORDER APPROVING DISTRIBUTION AGREEMENT. The Receiver had earlier filed with the Court the RECEIVER'S EX PARTE APPLICATION FOR ORDER APPROVING DISTRIBUTION AGREEMENT; MEMORANDUM OF POINTS & AUTHORITIES. The ex parte application to the Court sought approval of a negotiated distribution agreement for the movie, “The Perfect Game.” The Receivership holds significant interest in the movie. In order to obtain theatrical distribution the movie needed to obtain a distribution agreement and prints and advertising monies to promote and market the film. The agreement is with the distributor, MIP Film Partners, LLC. The movie is slated for release on April of 2010.
RECEIVER’S SIXTH STATUS REPORT On January 11, 2010, the Receiver filed the RECEIVER'S SIXTH STATUS REPORT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of December 31, 2009.
AMENDED ORDER GRANTING IN PART MOTION FOR ORDER IN AID OF RECEIVERSHIP On December 16, 2009, Judge Carter issued an AMENDED ORDER GRANTING IN PART MOTION FOR ORDER IN AID OF RECEIVERSHIP. This order allows notice to known creditors of the Receivership Entities by publication on the Receiver’s website. Creditors shall have the option of being notified by email when the Receiver’s website is updated or receiving notice by mail upon written request to the Receiver. This order will allow for substantial costs savings to the Receivership Entities. The order also extended the filing of a schedule of known creditors to December 16, 2009.
RECEIVER’S FIFTH STATUS REPORT On December 10, 2009, the Receiver filed the RECEIVER'S FIFTH STATUS REPORT in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of November 30, 2009.
SOUTHWEST ATLANTA MEDICAL CENTER; ORDER GRANTING RECEIVER’S EX PARTE APPLICATION FOR ORDER On December 1, 2009, Judge Carter issued an ORDER GRANTING RECEIVER'S EX PARTE APPLICATION FOR ORDER to sell the Southwest Atlanta Medical Center property, approving the overbid procedures and approving notice of the sale. Judge Carter reserves the right to revoke approval of these procedures at the sale confirmation hearing scheduled for December 14, 2009.
RED HILL PERSONAL PROPERTY; MOTION TO SELL IN AUCTION On November 25, 2009, the Receiver filed with the Court a MOTION FOR ORDER AUTHORIZING THE AUCTION OF PERSONAL PROPERTY located at the Medical Capital headquarters located in Tustin, CA. The motion also seeks approval of the agreement with the auctioneer and contains points and authorities. The Receiver also submitted a DECLARATION in support of the motion. The hearing is scheduled for 8:30 a.m. on Dec. 28, 2009.
SOUTHWEST ATLANTA HOSPITAL; APPLICATION TO SELL On November 20, 2009, the Receiver filed with the Court several motions and proposed orders regarding the proposed sale of the Southwest Atlanta Medical Center. The Receiver filed an EX PARTE APPLICATION FOR ORDER AUTHORIZING THE SALE OF SOUTHWEST ATLANTA MEDICAL CENTER, with approved overbid and notice procedures. Also attached to this document are a proposed ex parte order to sell the property, and proofs of service. The Receiver also filed a NOTICE OF MOTION AND MOTION FOR ORDER APPROVING SALE OF SOUTHWEST ATLANTA MEDICAL CENTER FREE AND CLEAR OF LIENS with authorization to pay certain liens and broker’s commission, and a memorandum of points and authorities regarding the proposed sale. Also attached to this document are a proposed order to sell the property, a declaration by the Receiver in support of the application which includes the purchase and sale agreement, and proofs of service. The hearing for these applications is set for 8:30 a.m. on December 14, 2009.
MOTION FOR ORDER IN AID OF RECEIVERSHIP On November 17, 2009, the Receiver filed with the Court a NOTICE OF MOTION AND MOTION FOR ORDER IN AID OF RECEIVERSHIP. The motion asks the Court to grant permission to provide notice and information to the creditors using this web site rather than exclusively through the mails. This action is being taken to save significant receivership monies for later distribution to creditors. The motion also seeks authorization to market and sell receivership assets through Court-approved procedures and to extend the deadline to file a schedule of known creditors with the Court.
RECEIVER’S FOURTH STATUS REPORT On November 10, 2009, the Receiver filed the Receiver’s Fourth Status Report in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include a summary of the Receiver’s actions over the past month, an inventory of key assets of the receivership and an accounting as of October 31, 2009.
CASTLE HILL RETIREMENT VILLAGE SALE HEARING CONTINUED TO WEDNESDAY, OCTOBER 28, 2009, 9:00 a.m. On October 21, 2009, the Court ordered the Hearing on the Motion by Receiver for Order: (A) Approving Sale of Castle Hill Property Free and Clear of Liens; (B) Authorizing the Receiver to Pay Certain Liens and Claims from the Sale of Proceeds and (C) Approving the Real Estate Broker's Commission; which was previously scheduled for October 26, 2009, CONTINUED to Wednesday, October 28, 2009 at 9:00 a.m. The Motion by Receiver and other information regarding the sale of the Castle Hill Retirement Village are located below.
RECEIVER’S THIRD STATUS REPORT On October 9, 2009, the Receiver filed the Receiver’s Third Status Report in accordance with the Court’s order to provide monthly status reports. Items discussed in this Status Report include an account of receipts and disbursements and the status of ongoing efforts to collect funds owed to Medical Capital.
The Receiver has selected an auctioneer to conduct an auction of the furniture, fixtures and equipment at Medical Capital’s office building in Tustin, California, and has listed the property for sale for $9.75 Million, subject to Court approval.
The Receiver encourages overbids for the property. The minimum overbid for the Castle Hill Retirement Village is $14,900,000. To be considered, all overbids must be received by the Receiver by 5:00 PM Pacific Standard Time, October 21, 2009. Any party that wishes to make an overbid should contact Mike Meisenbach, of Lee & Associates, at (949) 675-4733, for the form of a Purchase and Sale Agreement and other information.
RECEIVER’S SECOND STATUS REPORT On September 8, 2009, the Receiver filed the Receiver's Second Report to the Court. The report provides updated accounting for the receivership estate as of September 5, 2009. The report addresses matters relating to the collection of receivables by the Receiver, an updated inventory of assets and a summary of the ongoing forensic accounting. The Court denied the Defendant’s motion for approval to file bankruptcy and replace the Receiver. The Court also ordered the Receiver to file monthly reports on the tenth of each month.
APPOINTMENT OF PERMANENT RECEIVER On August 17, 2009, Judge Carter granted the SEC’s Application for Preliminary Injunction against the defendants MCHI, MCC, MP VI, Sidney M. Field, and Joseph J. Lampariello, and for the Appointment of Thomas Seaman as Permanent Receiver. The Preliminary Injunction and Order Appointing a Permanent Receiver may be found on the Case Documents page. The Preliminary Injunction bars the defendants and those affiliated with them, from the offer or sale of any securities or property of Medical Capital or any of its subsidiaries or affiliates. The Order Appointing Permanent Receiver grants Thomas Seaman the full powers of equity receiver over all funds, assets, collateral and premises belonging to or being managed by Medical Capital.
RECEIVER'S 10 DAY REPORT AND ACCOUNTING On August 12, 2009, the Receiver filed his initial 10 Day Report and Accounting with the Court and that report may be found in the Case Documents.
ADDITIONAL INFORMATION
In addition to the accounting, the Receiver’s current primary focus is on marshalling and preserving the assets of the company for the benefit of the note holders and the receivership estate. The Receiver will update this website with the status of his efforts and other developments affecting note holders and other interested parties. The Receiver respectfully requests that note holders and broker-dealers refrain from calling the Receiver’s offices. Note holders and other potential claimants may change their address by sending an email to mail@medicalcapitalreceivership.com. For those without access to a computer, the Receiver has established a telephone number (949) 222-0305, that note holders and interested parties may call to leave their contact information or changes. Due to the volume of investors, callers should not expect a return call. In addition to this website, the Receiver will mail legal notices and other correspondence to note holders and interested parties as required by the Court.
