ASTA/MAT Falcon SEC Distribution Fund


In consultation with the Commission, the filing deadline for the Investment Verification Notice has been extended until January 8, 2019. Potentially Eligible Investors who fail to respond (either to confirm or object to the Investment Amount) by January 8, 2019 will be deemed to have confirmed their Investment Amount.

Welcome to the ASTA/MAT Falcon SEC Distribution Fund

On August 17, 2015, the Securities and Exchange Commission (the “Commission” or “SEC”) instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Citigroup Alternative Investments LLC and Citigroup Global Markets Inc. (collectively, the “Respondents”). In the Order, the Commission found that, between 2002 and 2007, the Respondents violated federal securities laws by making material misstatements and omissions in the offer and sale of securities in two now-defunct hedge funds—the ASTA and MAT funds (“ASTA/MAT”) and the Falcon Strategies funds (“Falcon”),comprised of the following nine separate underlying fund: Falcon2, Falcon 2b, Falcon 3, Falcon 4, Falcon Plus, ASTA/MAT, ASTA/MAT 2, ASTA/MAT 3 and ASTA/MAT 5 (collectively, the “Potentially Eligible Funds”). As a result, the Respondents raised approximately $2.898 billion from approximately 4,000 investors in ASTA/MAT and Falcon and in 2008 both funds collapsed resulting in billions of dollars in losses. The Commission ordered, and the Respondents have paid, a total of $179,562,328.00 in disgorgement and prejudgment interest to the Commission (the “Distribution Fund”).

On April 27th, 2018, the Commission approved the Plan of Distribution (“Plan”). The purpose of the Plan is to refund a portion of the investors’ losses between 2002 and 2008 (the “Recovery Period”). The distribution methodology allocates the Net Available Distribution Fund to the nine Potentially Eligible Funds in a manner that attempts to equalize investors’ aggregate recovery of losses across those nine funds. The methodology further allocates the distributions among harmed investors in proportion to their Investment Amount or Adjusted Investment Amount, as the case may be, within each Eligible Fund.

There will be no claim process in connection with the Distribution Fund and therefore no claim form will need to be submitted in order to receive a distribution from the Distribution Fund. Instead, an investor in any of the Potentially Eligible Funds during the Recovery Period and who is not an Excluded Party (the, “Potentially Eligible Investor), will receive an Investment Verification Notice which sets forth the Investment Amount provided to GCG (the, “Fund Administrator”) by the Respondents. Potentially Eligible Investors will have 30 days from the date of the notice to confirm or object to the Investment Amount set forth. All confirmations and objections must be sent to the Fund Administrator in writing, by email to:, or mail to:

ASTA/MAT Falcon SEC Distribution Fund c/o GCG P.O. Box 9349 Dublin, OH 43017-4249

Potentially Eligible Investors who fail to respond to the Investment Verification Notice within 30 days will be deemed to have confirmed their Investment Amount.

Case Documents