Defendant Name:
Citibank, N.A.
Defendant Type:
Subsidiary of Public Company
Document Reference:
2018-255
Document Details
Legal Case Name
In the Matter of Citibank, N.A.
Document Name
Citibank to Pay More Than $38 Million for Improper Handling of ADRs
Document Date
07-Nov-2018
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
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"
Disgorgement & Penalty Information
Resolutions
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Disgorgement
Individual:
$20,900,000.00
Shared:
Civil Penalty
Individual:
$13,500,000.00
Shared:
Pre-Judgment Interest
Individual:
$4,200,000.00
Shared:
