BOCA RATON, Fla., April 29, 2008 (PRIME NEWSWIRE) -- The Law Firm of Robert Wayne Pearce, P.A. of Boca Raton, Florida, is investigating and filing individual claims on behalf of Citigroup ASTA/MAT, CSO Partners, Falcon Strategies fund investors who believe the funds were misrepresented and mismanaged. Mr. Pearce personally has over 25 years experience representing investors against brokerage firms in courtroom, arbitration and mediation proceedings throughout the United States.
According to the law firm's investigation, Citigroup's ASTA and MAT funds are trusts run by Citigroup that borrowed money by issuing tax-exempt commercial paper and then used the cash to buy municipal bonds that have slightly higher yields, pocketing the difference. The trusts then hedged against big swings in interest rates using taxable securities. And to bolster returns, they piled on leverage. By the end of 2007, the fund was on life support and subject to margin calls. Citigroup has since made an equity infusion into funds that may now be worth less than 10% of their original cost.
Further, the law firm's investigation has revealed the largest U.S. bank has also suspended redemptions in CSO Partners, a fund specializing in corporate debt. The fund's manager, John Pickett, left following a dispute with Citigroup after he tried to back out from committing more than half the fund's assets to buy leveraged loans tied to a German media company. That matter was settled when CSO agreed to buy $746 million of the loans at face value even though they were trading at deep discounts.
Moreover, the law firm has discovered that Falcon Plus Strategies, launched September 30, 2007, lost 52 percent in the fourth quarter after betting on mortgage-backed and preferred securities and making trades based on the relative values of municipal bonds and U.S. Treasuries. Some collateralized debt obligations in the fund trade at 25 percent of their original cost.
All investors in any of the above funds seeking the advice of counsel about their investments and/or any settlement with Citigroup, may want to contact: Robert W. Pearce, Esq. at 1499 W. Palmetto Park Road, Suite 300, Boca Raton, Florida 33486, by telephone: 1-800-732-2889 or e-mail: Pearce@RWPearce.com. Please visit the law firm's website for further information on our qualifications and experience: www.SECATTY.com.