Citigroup Global Markets Inc. Securities Attorney

Investment losses have many sources and causes. The attorneys of Gana LLP focus their practice on uncovering the reasons for those losses and representing clients in disputes with their brokerage firms, such as Citigroup Global Markets Inc. (Citigroup). We focus on investigating and uncovering evidence that brokerage services and products sold to clients were subject to misconduct by the firm. Securities misconduct includes securities fraud, unsuitable investments, breach of fiduciary duty, failure to supervise, and failure to conduct adequate due diligence on securities offerings.

Citigroup is affiliated with, under common control, or otherwise performs business under the company names Capital Management Division, Citi Institutional Consulting, Citi Personal Wealth Management, Citi Private Bank, Citigroup Asset Management, First Madison Advisors, Salomon Smith Barney Inc., Smith Barney Inc., and Smith Barney Asset Management.

Citigroup Inc. is an American multinational financial services corporation located in Manhattan, New York. Citigroup was formed from the merger of the banking giant Citicorp and financial conglomerate Travelers Group in October 1998. It is currently the third largest bank holding company in the United States by assets. Citigroup has a financial services network spanning 140 countries with approximately 16,000 offices worldwide.

Citigroup – By the Numbers:

  • CRD# 7059
  • SEC# 8-8177
  • 393 Regulatory Events
  • 792 Customer Complaints
  • Revenue: $70.17 billion – 2012
  • Net Income: $7.54 billion - 2012
  • Assets: $1.87 trillion - 2012
  • Customer Accounts: 200 million
  • Employees 260,000

Citigroup – In the News:

Commonwealth of Massachusetts Securities Division v. Citigroup Global Markets Inc., Docket No. 2013-0014 – Massachusetts fined Citigroup $30 million concerning allegations that certain investors had inside information about a company that put other investors at a disadvantage. According to the settlement, a Citigroup analyst in Taiwan offered research pointing to lower shipments of the iPhone 5 to a select group of clients one day before the report was available to the rest of the market. According to the complaint, the clients who got the advance research report allegedly were T. Rowe Price and hedge funds Citadel, GLG Partners, and SAC Capital. In addition to the fine, Citigroup agreed to increase compliance and review its electronic surveillance of communications between its analysts and those outside the company to prevent future occurrences.

SEC v. Citigroup Global Markets Inc., – The Securities and Exchange Commission (SEC) fined Citigroup’s broker-dealer subsidiary a total of $285 million over allegations of misleading investors about a $1 billion collateralized debt obligation (CDO) in which Citigroup bet against investors as the housing market showed signs of distress. According to the SEC, the CDO defaulted within months, causing investor losses while Citigroup made $160 million in fees and trading profits. The SEC alleged that Citigroup Global Markets structured and marketed Class V Funding III and exercised influence over the selection of $500 million of the assets in the CDO portfolio. Citigroup then took a proprietary short position against the same mortgage assets to profit from the decline in assets value. The SEC found that Citigroup did not disclose to investors its role in the asset selection process or that it took a short position against the assets.

FINRA v. Citigroup Global Markets Inc., AWC No. 2008012808101 - The Financial Industry Regulatory Authority (FINRA) fined Citigroup Global Markets, Inc. $3.5 million over allegations that the firm provided inaccurate mortgage performance information and supervisory failures in connection with subprime residential mortgage-backed securitizations (RMBS). Issuers of RMBS are required to disclose historical performance information that contain mortgage loans similar to those in the RMBS being offered. FINRA found that from January 2006, to October 2007, Citigroup posted inaccurate mortgage performance data on its website until early May 2012 even though the firm lacked a reasonable basis to believe that the data being posted was accurate.

Our firm has represented hundreds of investors in securities disputes against brokerage firms that have taken unfair advantage of their clients and mishandled their accounts. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.