Citigroup Agrees To Pay $15 Million After SEC Files Compliance Violation Issues

Citigroup Paying 15 million dollar fine

Citigroup Inc has agreed to pay a $15 fine after the SEC filed civil charges against the group for failing to implement procedures that would detect and prevent insider trading.

The Securities and Exchange Commission accepted the settlement on Wednesday, marking the second time this week that Citigroup and its affiliates were hit with multi-million dollar fines.

Two Citigroup affiliates were forced to pay $179.5 million. Citigroup Alternative Investments, a subsidiary of the bank, and Citigroup Global Markets, were charged with telling mostly wealthy investors that their investments from 2002 to 2007 were placed into mostly low-risk portfolios that were similar to bonds.

The financial crises in mid-2007 caused those investors to lose a majority of their investments.

The settlement states that the funds manager failed to disclose “very real risks” of the funds. Managers at the funds also provided verbal feedback that directly conflicted with fund marketing materials.

Citigroup has not issued any comments about the payouts.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.