GOODMAN & NEKVASIL MAY RECOVER YOUR LOSSES – CITIFX ALPHA INVESTORS
The SEC announced on January 24, 2017, that Morgan Stanley Smith Barney, LLC and Citigroup Global Markets Inc. have agreed to pay more than $2.96 million apiece to settle charges that they made false and misleading statements about a foreign exchange trading program they sold to investors.
According to the SEC’s orders, Citigroup Global Markets Inc. held a 49 percent ownership interest in Morgan Stanley Smith Barney, LLC at the time, and registered representatives at both firms were pitching a foreign exchange trading program known as “CitiFX Alpha” to Morgan Stanley Smith Barney, LLC customers from August 2010 to July 2011. The SEC’s orders find that their written and verbal presentations were based on the program’s past performance and risk metrics, and they failed to adequately disclose that investors could be placed into the program using substantially more leverage than advertised and markups would be charged on each trade. The undisclosed leverage and markups caused investors to incur significant losses.
The SEC’s orders found that Morgan Stanley Smith Barney, LLC and Citigroup Global Markets Inc. violated Section 17(a)(2) of the Securities Act of 1933, which prohibits obtaining money or property by means of any material misstatement or omission in the offer or sale of securities.
If you invested in the CitiFX Alpha foreign exchange trading program, we would like to discuss the possibility of you retaining our firm to represent you in an arbitration action against your brokerage firm. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $170 million on behalf of victimized investors. If you invested in CitiFX Alpha and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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