A large FINRA arbitration award was recently rendered against Citigroup Inc. (“Citigroup”) for sales practice abuses concerning Citigroup’s selling and marketing of the MAT Five LLC (“MAT Five”). The MAT Five had a $500,000 minimum investment requirement and was promoted to fixed-income investors who were seeking preservation of capital. Citigroup represented that the MAT Five was designed to produce stable cash flows in a tax-advantaged arbitrage opportunity. In actuality, the MAT Five was a very risky investment. Based on these claims, our firm has filed numerous arbitrations against Citigroup on behalf of investors and customers of Citigroup who invested in the MAT Five.
Recently, a FINRA arbitration panel found Citigroup liable for the entire losses of three MAT Five investors in the amount $1.7 million. Citigroup was also ordered to pay the entire cost of the hearing. The FINRA award reportedly represents the clients’ full investment loss in the MAT Five fund. These investors, like all other investors in the MAT Five, received, acknowledged and signed the MAT Five offering materials, including, the Subscription Agreement and Private Placement Memorandum, which purportedly contained risk disclosures, yet the Panel awarded all of the investor’s damages for their investment in the MAT Five.
If you suffered losses stemming from the MAT Five, contact Lax & Neville, LLP.