Citigroup recently settled charges with the Securities and Exchange Commission (SEC) involving two hedge funds. Citigroup agreed to pay $180 million to settle the charges which alleged the two funds were improperly marketed.
According to InvestmentNews, the two funds Citigroup misrepresented were the Falcon Strategies Fund and ASTA/MAT Fund. Allegedly, Citigroup’s alternative investment unit and brokers misrepresented the funds as low-risk and safe bond substitutes.
The two funds raised nearly $3 billion from investors from 2002 to 2007. The funds were sold by private bankers and Smith Barney brokers.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
Brokerage firms that mislead clients and recommend inappropriate investment may be liable for investment losses through a FINRA arbitration claim. If you believe you were mislead by your financial professional and suffered losses, call The White Law Group at 312-238-9650 for a free consultation.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
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