Khuzami In Hot Seat Over $75M Citi Settlement

Law360, New York (January 11, 2011, 3:08 PM EST) -- U.S. Securities and Exchange Commission internal investigators are reviewing allegations that Robert Khuzami, director of the agency's Enforcement Division, gave two Citigroup Inc. executives preferential treatment during negotiations over the $75 million settlement of a subprime mortgage probe.

Sen. Chuck Grassley, R-Iowa, received the anonymous tip — which says Khuzami had fraud charges against the men dropped after meeting secretly with a defense attorney for the bank, who was also a close friend — and forwarded it to the SEC's Office of Inspector General H. David...
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