Defendant Name:
Citigroup Inc.
Defendant Type:
Public Company
Document Reference:
2018-155_34-83858
Document Details
Legal Case Name
In the Matter of Citigroup Inc.
Document Name
Citigroup to Pay More Than $10 Million for Books and Records Violations and Inadequate Controls
Document Date
16-Aug-2018
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
The Commission stated that: "The SEC's order finds that Citigroup subsidiary Grupo Financiero Banamex S.A. de C.V. loaned approximately $3.3 billion to Oceanografia, S.A. (OSA) between 2008 and 2014 based on invoices and work estimates for services that OSA provided to Petroleos Mexicanos (Pemex), the Mexican state-owned oil company. According to the order, many of the OSA work estimates were fraudulent and did not reflect amounts Pemex actually owed to OSA. Citigroup ultimately lost approximately $475 million as a result of OSA's fraud. The SEC's order finds that Banamex and Citigroup lacked the controls necessary to verify the invoices before making loans to OSA and ignored numerous red flags that should have led to discovery of the fraud."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$4,750,000.00
Shared:
