If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*
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Our Law Firm is representing numerous high-net-worth and ultra-high-net-worth investors who sustained losses in leveraged municipal bond arbitrage hedge funds sold by Wall Street brokerage firms. The municipal bond arbitrage strategy employed by these funds was risky and exposed investors to losing their principal investment. Nonetheless, the funds, promoted as “alternative investments,” were represented by several brokerage firms to be fixed income products that could provide higher yield, with less risk. Moreover, the funds were touted as being safe and secure investments that were not subject to a significant amount of volatility, and were therefore suitable for conservative investors like retirees. In fact, some firms referred to the funds as being just like a traditional municipal bond portfolio. In reality, however, the arbitrage strategy employed in the funds was a leveraged bet on interest rates, on liquidity, on the value of short call options, and on credit risk. Most investors had no concept of how the funds actually worked, nor were they properly advised of the hidden risks which lurked within the products or the arbitrage strategy itself. Due to the lack of disclosure and/or misrepresentations concerning the risks of these products, unsuspecting investors who were looking to preserve their capital sustained substantial losses.
Presently, we are processing and/or investigating claims on behalf of investors who lost money in Citigroup’s ASTA/MAT Funds, Aravali Fund, Blue River Asset Management, GEM Capital, Rockwater Hedge Fund, LLC, Stone and Youngberg Municipal Advantage Fund, TW Tax Advantaged Fund, and 1861 Capital Management Funds. There were more than 35 similar leveraged municipal bond arbitrage funds that were marketed by brokerage firms across the country.