MCG Madison Apex Investors LLC Lawsuit Investigation

MCG Madison Apex Investors Pref: Help for Investors

The White Law Group is investigating potential securities lawsuits involving broker-dealers who may have improperly recommended MCG Madison Apex Investors Pref, LLC to investors.

What is MCG Madison Apex Investors Pref, LLC?

MCG Madison Apex Investors Pref, LLC, sponsored by Madison Capital Group, is a North Carolina-based residential real estate investment fund. According to its Form D filing with the SEC, the company filed a new notice to raise capital through a Regulation D Rule 506(b) offering.

The total offering amount was $11 million, with no reported sales at the time of the filing. The minimum investment amount was listed as $50,000. The issuer disclosed estimated sales commissions of $1.32 million, or 12% of the total offering, to be paid to multiple broker-dealers, including:

• DAI Securities, LLC (CRD#: 36673)

• Growth Capital Services, Inc. (CRD#: 124658)

• Emerson Equity LLC (CRD#: 130032)

• Arete Wealth Management, LLC (CRD#: 44856)

• Arkadios Capital (CRD#: 282710)

REG D Private Placements: High Risk Investments

Private placement investments are often touted for their income potential and for being “non-correlated” to the stock market. Too often, the financial advisor or broker ignores and/or fails to disclose the risks involved in these investments.

However, private placement investments such as MCG Madison Apex Investors Pref, LLC are typically illiquid investments. There are often legal or contractual restrictions on your ability to liquidate your investment, and even if sale of the offering is permitted, there may be no buyers. You may need to hold these securities for an indefinite period of time.

Companies that issue unlisted securities may provide little or no transparency into their financial condition.

While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment—sometimes close to 10% or more of the client’s total investment.

MCG Madison Apex Investors Preferred: Suitable for You?

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:

• FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.

• Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.

FINRA Lawsuits

If you are concerned about your investment losses in MCG Madison Apex Investors Pref, LLC, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

https://whitesecuritieslaw.com