Aug
17
Citigroup to Pay $180 Million on Crisis-Era Hedge Fund Fraud
ByCitigroup Inc. agreed to pay almost $180 million to settle a U.S. regulator’s allegations that it defrauded wealthy clients of two failed hedge funds by telling them the investments were as safe as low-risk municipal bonds.
Citigroup units made false and misleading statements about the funds, which raised almost $3 billion from 2002 to 2007, the Securities and Exchange Commission said in a statement Monday. Before the funds collapsed in 2008, the bank didn’t tell most clients that an internal rating showed the investments posed significant risks to principal and Citigroup also failed to disclose that one of the funds was seeking an emergency loan…
Citigroup to Pay $180 Million on Crisis-Era Hedge Fund Fraud
