Defendant Name: Citigroup Global Markets Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Citigroup Inc.
SIC Code: 6021
CUSIP: 17296710

Document Reference: 34-51761

Document Details

Legal Case Name In the Matter of Smith Barney Fund Management LLC and Citigroup Global Markets, Inc.
Document Name Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 and Section 15(b)(4) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date 31-May-2005
Document Format Administrative Proceeding
File Number 3-11935
Allegation Type Investment Advisers/Investment Companies
Document Summary On May 31, 2005, the SEC instituted settled administrative and cease-and-desist proceedings against Smith Barney Fund Management LLC (the "Adviser") and Citigroup Global Markets, Inc. According to the SEC: "In this case, the Adviser, which serves as investment adviser to the Smith Barney Family of Funds (the 'Funds'), recommended the Funds contract with an affiliate of the Adviser, which would perform limited transfer agent services and sub-contract with the Funds' existing transfer agent. The existing transfer agent would perform almost all of the same services it had performed previously, but at deeply discounted rates, permitting the affiliate of the Adviser to keep most of the discount for itself and make a high profit for performing limited work. In making this recommendation, the Adviser misled the boards by omitting material facts, which led the boards to believe that the Adviser's recommendation was made in the Funds' best interests, which was not true. This self-interested proposal permitted the Adviser and its affiliates to profit from the transfer agent function at the expense of the Funds."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Various undertakings
Plan of Distribution
Monetary Penalties:

Disgorgement

Individual:     Shared:     $109,004,551.00
Shared with: Smith Barney Fund Management LLC

Civil Penalty

Individual:     Shared:     $80,000,000.00
Shared with: Smith Barney Fund Management LLC

Pre-Judgment Interest

Individual:     Shared:     $19,055,630.00
Shared with: Smith Barney Fund Management LLC

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Other Defendants in Action:

Smith Barney Fund Management LLC

Related Actions:

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Lewis E. Daidone
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