Malecki Law Announces Investigation of 1861 Capital Management

November 2, 2011

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law's history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating the potential for recovery of losses from 1861 Capital municipal bond arbitrage funds sold by brokerage firm UBS. 1861 Capital Management is an investment firm based in New York, NY. It has been alleged that 1861 Capital Discovery Domestic Fund, LP was marketed and sold by UBS and other broker dealers as a sound and secure addition to a portfolio of municipal bonds. It may be more accurate to say, however, that 1861 would be better described as a leveraged municipal arbitrage fund.

In marketing such funds to investors, it has been alleged that UBS and their peers sought investors who were not only wealthy, but also cautious: those avoiding risk, making slow-but-steady investments, who would be drawn to the tax free municipal bonds to which the leveraged fund was coupled.

If these allegations are correct, the approach employed by 1861 was not only questionably deceptive, but dangerous in risking for its investors severe or total losses from a truly volatile fund. Such endeavors would be inconsistent with guarantees made about the safety and security of these investments.

It is the right of any and all investors who believe they may have suffered losses as a result of recommendations of their financial advisor to contact our offices to explore their legal rights and options. If you or a family member invested in 1861 Capital Management, contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.