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MCI Preferred Income Fund II: Investor Loss Investigation

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Updated on: November 4, 2024

National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in MCI Preferred Income Fund II, LLC to their customers. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with MCI Holdings’ private placement offering.

KlaymanToskes believes investment firms and financial advisors may have misrepresented the risk-factors related to investments in MCI Preferred Income Fund II, in addition to failing to conduct due diligence on MCI Holdings’ investment offerings, leading to unsuitable recommendations. MCI Preferred Income Fund II investors may be entitled to a financial recovery through the filing of a FINRA arbitration claim.

If you suffered losses in MCI Preferred Income Fund II, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Investment Losses in MCI Preffered Income Fund II?

Investment Losses in MCI Preffered Income Fund II?

Contact KlaymanToskes

What is MCI Preferred Income Fund II, LLC?

MCI Preferred Income Fund II, LLC is a private placement real estate debt fund managed by Megatel Capital Investment (“MCI”). MCI Holdings filed a Form D with the Securities and Exchange Commission (“SEC”) to raise capital from investors for its investment offering in 2017. According to SEC filings, the total offering amount was purportedly $200,000,000.

According to MCI Preferred Income Fund II’s Form D filing, the following brokerage firms received sales compensation and may have recommended investments in MCI Preferred Income Fund II to their customers:

  • Accelerated Capital Group,
  • Accretive Wealth Management,
  • Advanced Strategies Agency,
  • Aegis Capital Corp.,
  • Aeon Capital,
  • Alexander Capital,
  • Altus Wealth Group,
  • American Global Wealth Management,
  • Arete Wealth Management,
  • Arive Capital Markets,
  • Arkadios Capital,
  • Asset Preservation Group,
  • Ausdal Financial Partners,
  • Bain Wealth Management Group,
  • Barndollar Investment Advisory Services,
  • BSG&L Financial Services,
  • Cabot Lodge Securities,
  • Cape Securities, 
  • Capital City Securities,
  • Capital Financial Services,
  • Capital Markets IQ,
  • Center Street Securities,
  • Chalice Capital Partners,
  • Claraphi Advisory Network,
  • Coastal Equities,
  • Coppell Advisory Solutions,
  • Crosspoint Financial,
  • Crown Capital Securities,
  • Dakota Securities International,
  • David A Noyes & Company,
  • Dedora Capital,
  • Dempsey Lord Smith,
  • DH Hill Securities,
  • Emerson Equity,
  • Fourstar Wealth Advisors,
  • ​​Fox Wealth Advisors,
  • Frontier Financial Partners,
  • Frontier Wealth Strategies.
  • Grand Parkway Capital,
  • Great Nation Investment Corporation,
  • Great Point Capital,
  • Green Vista Capital,
  • GVC Capital,
  • Harbor Light Investment Advisors,
  • Heritage Financial Systems,
  • Independence Capital ,
  • Intercarolina Financial Services
  • International Assets Advisory,
  • Investment Planners,
  • Investment Security Corporation,
  • J.K. Financial Services,
  • Jim Poe & Associates,
  • Joseph Stone Capital,
  • JRL Capital Corporation,
  • KCD Financial,
  • Kingsbury Capital,
  • Koshinski Asset Management,
  • Legacy Wealth Management,
  • Lifemark Securities,
  • Lucia Securities,
  • Lyles Wealth Management,
  • Matrix Private Wealth Solutions,
  • Momentum Advisors,
  • Naylor & Company Investments,
  • Network 1 Financial Securities
  • Newbridge Securities,
  • New Frontier Financial Advisory,
  • NI Advisors,
  • Orthniel Financial Advisory Services,
  • Personal Wealth Management,
  • PHX Financial,
  • Purshe Kaplan Sterling Investments,
  • RelyOn Financial Advisors,
  • Revere Securities,
  • Sanders Morris Harris,
  • Saxony Securities,
  • SCF Securities,
  • Strategic Advisors,
  • Stephen A. Kohn & Associates,
  • SWBC Investment Services,
  • T Dibernardo Consulting,
  • Taylor Capital Management,
  • The Hughes Group Wealth Management Partners,
  • The Strategic Financial Alliance,
  • Titus Financial,
  • WE Alliance Wealth Advisors,
  • Wealth Management of Kentucky,
  • Western International Securities,
  • WestPark Capital,
  • Westpark Wealth Advisors,
  • Whitehall Parker Securities,
  • Willow Grove Advisors,
  • Womack Investment Advisors,
  • World Equity Group,
  • Van Der Noord Financial Advisors,
  • Vanderbilt Securities,
  • Veripax Wealth Management,
  • Vestech Securities

What Are the Risks of Investing in MCI Preferred Income Fund II, LLC?

MCI Preferred Income Fund II, LLC is a high-risk private placement investment. Private placements or “Reg D” offerings can be highly volatile investments, as they are early-stage companies with limited information and are not bound to the same Securities Exchange Commission (“SEC”) disclosure requirements as public investment offerings. 

The brokers and financial advisors responsible for selling MCI Preferred Income Fund II may be held responsible for any financial losses sustained by investors. Brokerage firms and financial advisors must consider their client’s risk tolerance prior to making recommendations, and cannot overconcentrate their customers’ accounts in any one investment product or market sector.

KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations. The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.

If you suffered losses in MCI Preferred Income Fund II, or any other investments, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.

MCI Preferred Income II Investment Losses

Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with private placement investment recommendations is the high sales commissions brokers typically earn for selling these investments. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws

Can I File a Lawsuit to Recover Losses?

To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.

What is a FINRA Arbitration Claim?

FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).

The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.

If you suffered losses in MCI Preferred Income Fund II or any other investments, contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Signs Investors Should Look Out For About Their Brokerage Accounts

As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in MCI Preferred Income Fund II. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following: 

  • You have substantial losses in your investment accounts
  • You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
  • Your broker misrepresented investment opportunities, or failed to disclose details about investments 
  • You notice unauthorized transactions in your investment accounts
  • Your broker is not returning your calls or emails
  • You filed a complaint with your brokerage firm that has not been resolved
  • You see a mistake on your statement, or receive a fraudulent statement

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you purchased unsuitable MCI Preferred Income Fund II investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. ​​We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.