Investor Lawsuit Investigation: MCG Rock Hill K Mart, LLC – Madison Capital Group Securities Offering
The White Law Group is reviewing potential claims involving MCG Rock Hill K Mart, LLC, a Regulation D private placement investment sponsored by Madison Capital Group, according to a Form D filing with the SEC.
Madison Capital Group – Sponsor Overview
Madison Capital Group, headquartered in Charlotte, North Carolina, is a privately held investment firm with a strategic focus on real estate and private equity. The company specializes in two core areas:
- Go Store It Partners – a non-traded sponsor of self-storage facilities.
- Madison Communities – a developer of suburban, garden-style apartment complexes across the Southeastern United States.
The firm also sponsors various Reg D offerings, such as MCG Rock Hill K Mart, LLC, which reportedly raised $1.825 million from investors beginning in September 2020.
What is a Reg D Offering?
Regulation D offerings are unregistered securities available only to accredited investors. These high-risk investments often involve limited transparency and liquidity, and typically include:
- High commissions – In this offering, over $219,000 (roughly 12%) was paid in sales commissions.
- Related-party payments – A reported $250,000 of the raised capital was earmarked for a guarantee fee to Ryan Hanks, the executive officer of the issuer.
- Illiquidity – These investments are not publicly traded and may be difficult to sell.
- Complex structures – The real estate project and financing arrangements may expose investors to development and credit risks.
Broker-Dealer Duties and Suitability Concerns : MCG Rock Hill K Mart
Reg D investments like this one are often sold by independent broker-dealers such as Arkadios Capital. These brokers are legally obligated to perform due diligence and recommend only suitable investments based on an investor’s:
- Risk tolerance
- Financial needs
- Investment experience
- Liquidity requirements
If a broker fails to disclose risks, pushes high-commission products, or misrepresents the investment’s nature, it may be considered misconduct. Investors could be eligible to recover losses.
Recovery Options – FINRA Arbitration vs. Class Actions
Most investors seeking to recover losses from Reg D private placements do so through FINRA arbitration, not class action lawsuits. Arbitration can be more efficient and is typically required under brokerage account agreements.
Contact The White Law Group for a Free Case Review
If you have concerns about your investment in MCG Rock Hill K Mart, LLC or other Madison Capital Group offerings, contact The White Law Group for a free consultation.
Call 888-637-5510 or visit www.whitesecuritieslaw.com to speak with a securities attorney today.
Frequently Asked Questions – MCG Rock Hill K Mart
Who is Madison Capital Group?
A private real estate investment firm focused on self-storage and multifamily development, based in Charlotte, NC.
Is this Reg D publicly traded?
No. It is a private placement under Regulation D and not listed on any public exchange.
What are my options if I lost money?
You may be able to recover losses through a FINRA arbitration claim if your broker failed to perform proper due diligence or misrepresented the investment.
