The White Law Group Investigates MCI Preferred Income Fund VI Lawsuit and Recovery Options for Investors
The White Law Group is investigating potential securities lawsuits on behalf of investors who purchased interests in MCI Preferred Income Fund VI, LLC, a non-traded Reg D private placement purportedly managed by Megatel Capital Investment. If you invested in this fund and have suffered losses, contact our FINRA arbitration attorneys for a free consultation.
What Is MCI Preferred Income Fund VI, LLC?
MCI Preferred Income Fund VI, LLC is a Delaware limited liability company formed in 2021 and headquartered in Dallas, Texas. According to its SEC Form D filing, the fund is managed by Megatel Capital Investment, LLC, with MCI Holdings, LLC as a common member, and was organized to raise capital for real estate debt and equity investments, including multifamily development projects.
Offering Terms and Broker-Dealers Involved
The fund was offered under Rule 506(b) of Regulation D, with a $500 million target offering and a $25,000 minimum investment. Sales commissions on the offering were disclosed at up to 10% of gross proceeds. The Form D reportedly lists the following broker-dealers and firms as recipients of sales compensation for the offering:
- Primus Financial Services, LLC
- International Assets Advisory, LLC
- The Strategic Financial Alliance, Inc.
- Abound Wealth Strategies
- Alexander Capital, L.P.
- Alliance Global Partners
- Arkadios Capital, LLC
- Asset Preservation Group Inc.
- Ausdal Financial Partners, Inc.
- Benchmark Investments, Inc.
- Cabot Lodge Securities LLC
- Calton & Associates, Inc.
- Claraphi Advisory Network, LLC
- Crown Capital Securities, L.P.
- Dempsey Lord Smith, LLC
- DH Hill Securities, LLLP
- Elevation Wealth Management
- Fourstar
- Great Point Capital, LLC
- Hill Country Retirement Solutions LLC
- Infinity Financial Services
- Investment Fiduciary Planners, LLC
- Investment Planners, Inc.
- Investment Security Corporation
- Kingswood Capital Partners
- LifeMark Securities Corp.
- Network 1 Financial Securities Inc.
- Newbridge Securities
- NI Advisors
- PurePath Wealth Management
- Purshe Kaplan Sterling Investments
- Sanders Morris Harris LLC
- Saxony Securities, Inc.
- ShareNett Securities LLC
- Vestech Securities, Inc.
- Westpark Capital, Inc.
- World Equity Group
Broker Due Diligence Obligations
Any firm listed above that recommended MCI Preferred Income Fund VI had an independent duty to investigate the offering, not just rely on the sponsor’s materials. That means verifying Megatel Capital’s financial condition, track record, and use of proceeds, and confirming the investment matched each client’s net worth, income, and liquidity needs. Since Reg D offerings skip SEC review before they’re sold, a firm’s own due diligence is often the only real check an investor has.
Risks of Private Placement Investments
MCI Preferred Income Fund VI interests are illiquid and unregistered, with no public market and no independent valuation of the underlying real estate debt and equity positions. Distributions are a target set by the manager, not a guarantee, and can be cut or paused if the underlying projects underperform. Investors are also concentrated in a single sponsor’s real estate strategy, with no diversification across managers.
Recovering Investment Losses
If your broker sold you MCI Preferred Income Fund VI without properly vetting the offering or matching it to your financial profile, you may have grounds to recover your losses through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud attorneys with offices in Chicago and Seattle. If you invested in MCI Preferred Income Fund VI and have questions about your options, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I file a claim to recover money invested in MCI Preferred Income Fund VI?
Most investors bought into the fund through one of the broker-dealers listed above. Because most brokerage account agreements typically include a pre-dispute arbitration clause, claims against the firm are usually filed and resolved through FINRA arbitration rather than a courtroom lawsuit, and arbitration can still result in a monetary recovery.
2. Is MCI Preferred Income Fund VI a risky investment?
Yes — as a Reg D private placement, it’s an illiquid, unregistered security with no secondary market, so investors can be stuck holding it for years with no way to cash out early. Any return the manager targets depends entirely on how the underlying real estate projects perform, not a fixed rate.
3. Can my brokerage firm be held responsible for losses, even if it didn’t manage the fund itself?
Yes. Broker-dealers are required to supervise their representatives and confirm that a private placement like this is suitable for each investor before recommending it. A firm that skipped that step can be liable for failing to supervise, separate from how MCI Preferred Income Fund VI itself performs.
