Defendant Name: Citigroup Global Markets Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Citigroup Inc.
SIC Code: 6021
CUSIP: 17296742

Initial Case Details

Legal Case Name In the Matter of Citigroup Global Markets, Inc.
First Document Date 26-Jan-2017
Initial Filing Format Administrative Action
File Number 3-17817
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 204(a), 206(2), 206(4) Advisers Act; Rules 204-2(a)(10), 204-2(e)(1), 206(4)-7 Advisers Act

Resolutions

First Resolution Date 26-Jan-2017
Headline Total Penalty and Disgorgement $18,300,000

Related Documents:

34-79882 26-Jan-2017 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Sections 203(e) And 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 26, 2017 the SEC instituted a settled proceeding against Citigroup Global Markets, Inc. According to the SEC: "These proceedings pertain to violations of the Advisers Act arising out of advisory client fee overcharges by CGMI, a dually registered investment adviser and broker-dealer since 1960 with its principal place of business in New York."
2017-35 26-Jan-2017 Press Release--Administrative Proceeding
Citigroup Paying $18 Million for Overbilling Clients
On January 26, 2017 the SEC announced in a press release that Citigroup Global Markets has agreed to pay a monetary penalty to settle charges that it overbilled investment advisory clients and misplaced client contracts. According to the SEC: "at least 60,000 advisory clients were overcharged approximately $18 million in unauthorized fees because Citigroup failed to confirm the accuracy of billing rates entered into its computer systems in comparison to fee rates outlined in client contracts, billing histories, and other documents. Citigroup also improperly collected fees during time periods when clients suspended their accounts. The billing errors occurred during a 15-year period, and the affected clients have since been reimbursed."