Securities Investigation: MCI Preferred Income Fund IV
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended MCI Preferred Income Fund IV to investors.
MCI Holdings reportedly filed several form Ds to raise capital from investors for the offering MCI Preferred Income Fund IV. The total offering amount was purportedly $500,000,000.
MCI Preferred Income Fund IV is a Regulation D private placement investment. Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. In this case, the form D says the sales commissions were 10% which “includes Selling Commissions of 7%; Managing Broker-Dealer Fee of 2.5% (which may be re-allowed, in part, to certain members of the Selling Group); and up to 0.5% as a servicing fee…”
The problem with private placement investments is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Potential Lawsuits to Recover Financial Losses
The White Law Group is investigating potential claims involving brokerage firms who may have for improperly recommended high-risk private placements to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
Free Consultation
If you have concerns regarding your investment in MCI Preferred Income Fund IV and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
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