Arab Today, arab today citigroup pays 180m to settle hedge fund fraud case
Last Updated : GMT 10:42:23
Arab Today, arab today
Arab Today, arab today

Citigroup pays $180m to settle hedge fund fraud case

Arab Today, arab today

Arab Today, arab today Citigroup pays $180m to settle hedge fund fraud case

Citigroup collected
New York - AFP

US securities regulators ordered two Citigroup affiliates Monday to pay $180 million to settle charges that they defrauded investors by falsely claiming a pair of hedge funds were low-risk.

Citigroup collected nearly $3 billion from 4,000 investors by claiming the ASTA/MAT fund and the Falcon fund were low-risk investments akin to investing in government bonds, said the US Securities and Exchange Commission.

In 2008, both funds collapsed during the financial crisis.

"The funds were not bond substitutes, and an investment in the funds carried significantly greater risk than a bond investment," the SEC said.

Both funds used "significant amounts of leverage" and were classified in an internal Citigroup rating system as having "significant risk to principal."

"That rating, however, was not shared with the majority of investors and financial advisors," the SEC said.

The SEC criticized Citigroup for poorly overseeing fund management staff to ensure communications were "accurate and not misleading."

The order also faulted fund employees for dishonest statements about the funds' financial condition when they came under strain in 2007.

"Advisers at these Citigroup affiliates were supposed to be looking out for investors' best interests, but falsely assured them they were making safe investments even when the funds were on the brink of disaster," said Andrew Ceresney, director for the SEC's enforcement division.

Citigroup said through a spokesman that the bank is "pleased to have resolved this matter."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today citigroup pays 180m to settle hedge fund fraud case Arab Today, arab today citigroup pays 180m to settle hedge fund fraud case

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today citigroup pays 180m to settle hedge fund fraud case Arab Today, arab today citigroup pays 180m to settle hedge fund fraud case

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday