Defendant Name: Citibank, N.A.

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 Citibank, N.A.
First Document Date 07-Nov-2018
Initial Filing Format Administrative Action
File Number 3-18886
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(3)

Resolutions

First Resolution Date 07-Nov-2018

Related Documents:

33-10571 07-Nov-2018 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On November 7, 2018, the SEC instituted cease-and-desist proceedings and determined to accept an Offer of Settlement by Respondent. The SEC stated that: "These proceedings arise out of Citibank's improper practices involving the pre-release of American Depositary Receipts. . . . Contrary to how pre-release transactions were supposed to work, Citibank at times pre-released ADRs to Pre-Release Brokers in circumstances where Citibank was negligent with respect to whether the Pre-Release Brokers, or the parties on whose behalf the pre-release ADRs were being obtained, actually beneficially owned the corresponding number of ordinary shares, as they represented to Citibank in their Pre-Release Agreements."
2018-255 07-Nov-2018 Press Release--Administrative Proceeding
Citibank to Pay More Than $38 Million for Improper Handling of ADRs
On November 7, 2018, the SEC announced in a press release that: "Citibank N.A. has agreed to pay $38.7 million to settle charges of improper handling of "pre-released" American Depositary Receipts (ADRs)." According to the SEC: "Citibank improperly provided ADRs to brokers in thousands of pre-release transactions when neither the broker nor its customers had the foreign shares needed to support those new ADRs. Such practices resulted in inflating the total number of a foreign issuer's tradeable securities, which resulted in abusive practices like inappropriate short selling and dividend arbitrage that should not have been occurring"