Citigroup Unit To Shell Out $1M Over Disability Scam

Law360, New York (August 10, 2006, 12:00 AM EDT) -- A unit of Citigroup Inc. must fork over $1.1 million after 100 brokers allegedly obtained waivers of mutual-fund sales charges that falsely claimed their customers were disabled.

The National Association of Securities Dealers revealed the purported scheme on Thursday, labeling the scandal “a widespread failure” on the part of Citigroup.

After revealing the brokers’ misconduct, the head of the securities regulator blasted the investment giant for its inability to detect the nefarious plot.

“Firms are obligated to be alert for supervisory 'red flags' and address systemic...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.