Citigroup Global Markets, Inc. Found Liable for $54 Million to Investors in Mat/ASTA Municipal Arbitrage Fund According to Aidikoff, Uhl & Bakhtiari

A Denver, Colorado based Financial Industry Regulatory Authority (FINRA) arbitration panel awarded $54,058,948 to two clients of Aidikoff, Uhl & Bakhtiari and Maddox, Hargett & Caruso. The award included punitive damages of $17,000,000 and $3,000,000 in attorney fees. The FINRA arbitrators also assessed the entire cost of the hearing against Citigroup Global Markets, Inc. and ordered the firm to pay $33,500 in expert witness and $13,168 in court reporter costs. The primary investment complained of was a leveraged municipal arbitrage hedge fund known as Mat/ASTA launched by Citigroup Global Markets, Inc. and sold through both Smith Barney and Citigroup Private Bank, part of Citigroup's C Global Wealth Management Group. These funds were marketed exclusively to high net worth clients of the firm between 2002 and 2007. They were represented as being Fixed Income Alternatives with a slightly higher return than a portfolio of municipal bonds with little added risk. Instead, these funds imploded in February 2008 causing catastrophic losses to investors.