Investment fraud lawyers are investigating potential claims on behalf of investors who suffered losses as a result of municipal bond purchases. Two of the bonds currently being investigated are the TW Tax Advantage Fund and Harrisburg.
The TW Tax Advantage Fund, created by First Republic Investment Management, is a complicated, high-risk municipal arbitrage bond. Investment fraud lawyers are attempting to determine whether the necessary due diligence was performed by brokerage firms prior to the offering the investment for sale to their clients. Furthermore, broker-dealers may not have properly disclosed the features and risks of this complicated product. Shortly after the fund’s creation, it collapsed. As a result, investors of the fund suffered significant losses.
Securities arbitration lawyers are also investigating Harrisburg municipal bond. The general-obligation bond payments were missed for the first time by Harrisburg’s insolvent capital. Furthermore, its receiver is seeking approval for an asset sales plan. Reportedly, Harrisburg’s debt load is five times more than its general-fund budget and it missed bond payments amounting to $5.27 million. The bond payments were due on March 15. These payments were for bonds issued in 1997, amounting to $51.5 million.