FINRA Hits Citi With $2.4M Ruling Over Mat Five Fund

Law360, New York (December 3, 2010, 8:31 PM EST) -- A Financial Industry Regulatory Authority arbitration panel has awarded more than $2.4 million to five Tennessee investors who claimed Mat Five, a municipal arbitrage hedge fund launched in 2007 by Citigroup Global Markets Inc., imploded in February 2008, causing them "catastrophic losses."

The award, made public Wednesday, is believed to be the largest-yet tied to the Mat Five funds, an attorney for the claimants said Friday.

"The fund was represented by Citigroup to its brokers as a fixed-income alternative," said Ryan K. Bakhtiari of Aidikoff Uhl...
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