Citigroup's Stoker Misled Investors, SEC Tells Jury

Law360, New York (July 16, 2012, 8:40 PM EDT) -- Ex-Citigroup Inc. executive Brian Stoker misled investors in the marketing of collateralized debt obligations the bank allegedly bet against, a U.S. Securities and Exchange Commission lawyer told a jury Monday, launching a trial against the defendant.

Stoker, a former director with Citigroup's CDO structuring desk, failed to disclose that the bank would benefit from a $500 million short position it took if a synthetic CDO it helped create lost money, SEC lawyer Jeffrey Infelise told a nine-person jury.

The CDO, known as Class V Funding III,...
To view the full article, register now.