A Financial Industry Regulatory Authority arbitration panel awarded three people more than $1.7 million in connection with their investment in a Citigroup Inc. hedge fund that had its value devastated by the credit crunch.

The three had invested in MAT Five LLC, which had a $500,000 minimum investment and allegedly was marketed to fixed-income investors as being designed to "produce stable cash flows in a tax-advantaged arbitrage opportunity." The decision was announced Wednesday.

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