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SEC Charges Citigroup With Misleading Investors; Company Agrees to Pay $75M, Former Officers Also Pay Out-of-Pocket

July 30, 2010

Yesterday, the Securities and Exchange Commission filed a civil Complaint against Citigroup Inc., alleging:

“that in response to intense investor interest on the topic, Citigroup repeatedly made misleading statements in earnings calls and public filings about the extent of its holdings of assets backed by subprime mortgages. Between July and mid-October 2007, Citigroup represented that subprime exposure in its investment banking unit was $13 billion or less, when in fact it was more than $50 billion.”

According to an S.E.C. press release issued concurrently with the filing, the defendants have agreed to settle with Citigroup paying a $75 million penalty; former chief financial officer Gary Crittenden paying $100,000; and former head of investor relations Arthur Tildesley, Jr. paying $80,000. Read the entire S.E.C. Complaint below:
Citigroup Securities Fraud Complaint

If you have credible, original information regarding securities fraud in excess of $1,000,000, then you may be entitled to a substantial whistleblower reward. To report securities fraud, contact Frohsin & Barger.

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