Citibank Derivatives Fraud Cost Korean Firm $73M, Suit Says

Law360, New York (July 23, 2013, 7:46 PM EDT) -- Citibank NA was hit with a $73 million fraud suit Monday accusing it of duping Korean technology firm Simmtech Co. Ltd. into investing in derivatives contracts to hedge against currency fluctuations by hiding risks and exploiting Simmtech's lack of familiarity with the English language.

Simmtech, which makes printed circuit boards for semiconductors, alleged in a complaint filed in New York state court that Citibank failed to disclose that “knock in-knock out” derivatives “were highly complex, exotic, risky foreign exchange vehicles that exposed Simmtech to virtually unlimited...
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