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 Alternative Investments LLC and Citigroup Global Markets Inc.
First Document Date 17-Aug-2015
Initial Filing Format Administrative Action
File Number 3-16757
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Securities Act
Sec 17(a)(2)
Sec 17(a)(3)
Other
Section 206(2) Investment Advisers Act

Resolutions

First Resolution Date 17-Aug-2015

Related Documents:

2015-168 17-Aug-2015 Press Release--Administrative Proceeding
Citigroup Affiliates to pay $180 million to settle hedge fund charges
On August 17, 2015, the SEC announced that Citigroup Alternative Investments LLC and Citigroup Global Markets Inc. agreed to "pay nearly $180 million to settle charges that they defrauded investors in two hedge funds by claiming they were safe, low-risk, and suitable for traditional bond investors." According to the SEC: "The funds later crumbled and eventually collapsed during the financial crisis."
33-9893 17-Aug-2015 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 15(b)(4) of the Securities Exchange Act of 1934, and 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 August 17, 2015, the SEC instituted settled administrative and cease-and-desist proceedings against Citigroup Alternative Investments LLC and Citigroup Global Markets Inc. According to the SEC: "These proceedings concern material misstatements and omissions made by Respondents between 2002 and 2007 in the offer and sale of securities in two now-defunct hedge funds--the ASTA and MAT funds ('ASTA/MAT') and Falcon Strategies funds ('Falcon')."
34-76312 29-Oct-2015 Administrative Proceeding
Order Appointing Tax Administrator
On October 29, 2015, the Commission appointed Damasco and Associates LLP as the Tax Administrator for the Qualified Settlement Fund pursuant to and in accordance with an earlier Omnibus Order dated January 17, 2013.
34-77624 14-Apr-2016 Administrative Proceeding
Order Appointing Fund Plan Administrator and Setting Administrator Bond Amount
On April 14, 2016, the Commission ordered the appointment of Garden City Group as the fund plan administrator and required that Garden City Group obtain a bond in the amount of $179,562,328.
34-81570 11-Sep-2017 Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
"Notice is hereby given, pursuant to Rule 1103 of the United States Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans ("Rules"), 17 C.F.R.§ 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan of distribution ("Plan") for the distribution of monies paid by Citigroup Alternative Investment LLC ("CAI") and Citigroup Global Markets Inc. ("CGMI") (collectively, "Respondents") in the above-captioned matter."
34-82047 09-Nov-2017 Administrative Proceeding
Order Extending Time To Enter an Order Approving or Disapproving Plan Of Distribution
According to the SEC: "On September 11, 2017, pursuant to Rule 1103 of the United States Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans ("Rules"), 17 C.F.R.§ 201.1103, the Commission published a Notice of Proposed Plan of Distribution and Opportunity to Comment ("Notice")1 for the distribution of monies placed into a Fair Fund in the above-captioned matter. The Notice invited public comment on the proposed plan of distribution ("Plan") through October 11, 2017, and the Commission received public comments that raised various issues. . . IT IS ORDERED that pursuant to Rule 1104 of the Rules,2 for good cause shown, the time for entering an order approving or disapproving the Plan is extended to February 12, 2018."
34-82680 09-Feb-2018 Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Plan of Distribution
According to the SEC: "IT IS ORDERED that pursuant to Rule 1104 of the Rules, for good cause shown, the time for entering an order approving or disapproving the Plan is extended to March 30, 2018."
34-83123 27-Apr-2018 Administrative Proceeding
Order Approving Plan of Distribution
The SEC stated that: "After considering the comments to the Proposed Plan [of Distribution], Commission staff, working with the Commission-appointed fund administrator, GCG, have added modifications that address the comments received (the "Plan"). After careful consideration, the Commission concludes that the Plan should be approved."
34-83123-dp 27-Apr-2018 Administrative Proceeding
Plan of Distribution
The SEC stated that: "The purpose of this Plan of Distribution ("Plan") is to refund a portion of the investors' losses between 2002 and 2008 (the "Recovery Period"). The distribution methodology allocates the Net Available Distribution Fund (as defined below) to the nine Potentially Eligible Funds in a manner that attempts to equalize investors' aggregate recovery of losses across those nine funds. The methodology further allocates the distributions among harmed investors in proportion to their Investment Amount or Adjusted Investment Amount, as the case may be, within each Eligible Fund. . . . This Plan sets forth the methods and procedures for distributing the Distribution Fund."
34-87000 18-Sep-2019 Administrative Proceeding
Order Directing Disbursement of Distribution Fund
The Commission stated: "[I]t is hereby ORDERED, that Commission staff shall transfer $184,864,153 from the Distribution Fund to the Distribution Fund's escrow account at The Huntington National Bank, and the Fund Administrator shall distribute such monies to Eligible Investors as provided for in the Plan."

Other Defendants in Action: