MCI Preferred Income Fund II: Investment Losses? 

MCI Preferred Income Fund II Securities Investigation by The White Law Group

Are you concerned about your investment losses in MCI Preferred Income Fund II? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that sold you the investment.

What is MCI Preferred Income Fund II?

According to filings with the Securities and Exchange Commission (SEC), MCI Preferred Income Fund II is a Regulation D private placement investment based in Farmers Branch, Texas. The fund filed a Form D in 2017 seeking to raise up to $200 million from accredited investors.

These types of private placements are often sold by brokerage firms in exchange for high upfront commissions, typically ranging from 7–10%, with additional due diligence and marketing fees of 1–3%. In this case, SEC records indicate that the offering included a 10% sales commission.

Risks of Private Placement Investments

Investments like MCI Preferred Income Fund II are high-risk and illiquid. These securities are not traded on public exchanges, and they lack transparency and regulatory oversight compared to traditional investments such as stocks, bonds, or mutual funds.

Because of their speculative nature and lack of liquidity, private placements are often unsuitable for many retail investors, particularly retirees or those with low risk tolerance.

Broker-Dealer Due Diligence Obligations

Brokerage firms that recommend private placement investments have a duty to conduct reasonable due diligence to understand the risks and financial condition of the offering. Additionally, they must ensure that any investment recommendation is suitable for the client based on their financial profile, risk tolerance, and investment objectives.

If your broker failed to fully disclose the risks or misrepresented the nature of the investment, they may be liable for your losses through a FINRA arbitration.

FINRA Arbitration vs. Class Action – What’s the Difference?

If you’ve suffered losses in MCI Preferred Income Fund II, you may wonder about your legal options. Here’s a breakdown:

• FINRA Arbitration: This is a private dispute resolution process for resolving claims between investors and brokerage firms. It is typically faster and more efficient than court litigation. Each investor’s claim is individualized, meaning awards are based on your specific situation.

• Class Action Lawsuit: This is a public lawsuit filed on behalf of a group of investors. While class actions can be helpful in some cases, individual investors often receive lower compensation and have less control over the case.

In most cases involving unsuitable investment recommendations, FINRA arbitration is the preferred route for pursuing recovery.

Free Consultation with a Securities Attorney

If you have concerns regarding your investment in MCI Preferred Income Fund II, please contact The White Law Group at 888-637-5510 for a free consultation. Our experienced securities attorneys have handled hundreds of FINRA arbitration claims nationwide.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. We represent investors throughout the United States in claims against brokerage firms.

To learn more, please visit www.whitesecuritieslaw.com.

FAQs about MCI Preferred Income Fund II

1. Is MCI Preferred Income Fund II a safe investment?
Private placements like MCI Preferred Income Fund II carry significant risk, including lack of liquidity, limited transparency, and the potential for complete loss of capital.

2. Can I sue my broker for selling me MCI Preferred Income Fund II?
Possibly. If your broker misrepresented the investment or failed to ensure it was suitable for your financial situation, you may be able to file a FINRA arbitration claim.

3. How do I know if I qualify for FINRA arbitration?
If you purchased an investment through a FINRA-registered brokerage firm, and you suffered losses due to alleged misconduct or unsuitable recommendations, you may qualify. Contact us for a free review of your case.