Medical Capital Executive Sentenced to 10 Years in Federal Prison for Defrauding Investors
Joseph Lampariello, the former president and chief operating officer of Medical Capital Holdings Inc., a medical receivables financing company, was sentenced to 121 months in federal prison for running a Ponzi scheme through his Orange County-based company that defrauded more than 700 investors out of nearly $50 million. United States District Judge David Carter also ordered Lampariello to pay nearly $40 million in restitution.
Lampariello previously pleaded guilty to one felony count of wire fraud and one misdemeanor count of willfully failing to file a tax return.
Medical Capital Holdings, which operated out of offices in Anaheim and Tustin, administered several entities that raised money from investors who were told their money would be used to purchase account receivables from accredited medical providers, make secured loans and provide money for general operating expenses.
“Mr. Lampariello’s sentence properly reflects the significant harm he caused to hundreds of victims,” said United States attorney Eileen Decker. “This defendant’s false promises were designed only to provide wealth for himself, and he must now pay for that greed.”
Over 11 months in 2008 and 2009, Lampariello misappropriated funds invested with one of the entities and used the money to make Ponzi payments to prior investors and to pay himself administrative fees.
“The massive monetary figures can’t begin to explain the devastation to victims in this case, some of whom were forced out of retirement, some who lost their marriage and many more who lost trust and live with despair as a result,” said Deirdre Fike, the assistant director in charge of the FBI’s Los Angeles Field Office. “Investors must do extensive research before handing over their hard-earned savings, and must never fall for phony online profiles as a way of determining a reputable investment business.”
The case was the result of a joint investigation by the Federal Bureau of Investigation and IRS Criminal Investigation.
