Banks Sue Brokers Over Med Cap Fraud

Bank of New York Mellon Corp. and Wells Fargo Bank, who were trustees for Medical Capital Holdings, have sued a number of broker-dealers that marketed the Med Cap private placement offerings, claiming that the broker-dealers sold the securities to investors for whom it was an unsuitable investment and made misrepresentations about the investment's risks.  The banks are defendants in a 2009 class action that followed SEC charges that Med Cap was a fraud.  InvNews, Wells Fargo, BoNY Mellon sue Securities America, other B-Ds over MedCap