BEVERLY HILLS, Calif., Aug. 5, 2010 (GLOBE NEWSWIRE) -- Aidikoff, Uhl & Bakhtiari (www.securitiesarbitration.com) announces an investigation into the 1861 Capital Management municipal arbitrage funds sold by UBS and other broker dealers. The 1861 Capital funds imploded in February 2008, causing catastrophic losses to investors.
"1861 municipal arbitrage funds were marketed to clients as a fixed income product producing a couple of extra points above municipal bonds," according to Philip M. Aidikoff. "In truth, the 1861 funds were a high risk leveraged bet subjecting clients to a significant loss of principal."
In May 2010 two Los Angeles based Financial Industry Regulatory Authority (FINRA) arbitration panels awarded more than $2.2 million to clients of Aidikoff, Uhl & Bakhtiari, representing a return of 100 percent of the clients' principal losses in cases involving the Citibank ASTA/Mat municipal arbitrage funds which are similar to the 1861 product.
"The municipal arbitrage strategy employed was risky and exposed investors to about 2 times more volatility than the S&P 500 and about 7 times more volatility than a traditional portfolio of municipal bonds," stated Ryan K. Bakhtiari.
Aidikoff, Uhl & Bakhtiari represents retail and institutional investors around the world in securities arbitration and litigation matters. Attorneys for the firm have appeared before the Financial Industry Regulatory Authority (FINRA) and in numerous state and federal courts to resolve financial disputes between customers, banks, brokerage firms and other financial institutions. More information is available at www.securitiesarbitration.com or to discuss your options please contact an attorney below.