An investor who has sued the US bank has claimed a key victory in his case.

An investor who sued Citibank for various shortcomings recently has claimed that the bank has lost a “key decision” in defence of a lawsuit in Abu Dhabi.

A press release, issued on the PRNewswire feed on behalf of Dr Sami Abbas Hussein Ali on 27 April, states: "Citibank this month lost a key decision in its defense of a lawsuit in Abu Dhabi accusing the bank of self-dealing, defrauding investors, and attempting to cover-up investor losses."

The Abu Dhabi Commercial Court of First Instance on 14 April 2015 determined the lawsuit should proceed and ordered the appointment of a committee of experts to review evidence and determine Citibank's culpability, the statement said.

“This lawsuit is entirely without merit and not based on the actual events, as Citi will readily demonstrate in court. Furthermore, the decision of April 14 was entirely procedural in nature and has absolutely no bearing on the merits of the case. Citi is defending itself vigorously against these baseless allegations," the bank told this publication in an emailed statement when asked about the matter.

“The court's decision is a critical and important step in the plaintiff's attempt to ensure that Citibank will be held responsible for defrauding its investors, and the attorneys representing the plaintiff are looking forward to presenting the evidence to the committee of experts,” the statement said.

Dr Sami Abbas Hussein Ali sued Citibank and related entities in November 2014. His lawsuit contends that Citibank International, Citi Private Bank, and Citi Private Bank – Abu Dhabi did the following:

• Hid losses from investors in the CReAM (Citi Real Estate Asset Management) Fund, some of whom unknowingly lost their entire investment, for more than three years before sending a one-page letter that stated that previous quarterly reports showing value in the investment had been inaccurate as a result of a "Citi Private Bank operational error”;

• Purchased two shopping centres in the UK at questionable values, one of which appears to have been owned by the CReAM Fund's own manager, without disclosing the "insider" nature of the transaction to investors;

• Failed to obtain required approvals from the central bank of the UAE to solicit investments from investors in that country. Under UAE law, investments marketed to investors in the country without the required approvals are null and void.

Citibank marketed the CReAM Fund to investors in the GCC countries of the Middle East in 2004 as a medium risk investment projected to yield annual revenues at a rate of 4 per cent. From 2004 to 2006, the CReAM Fund, which was managed by David Lockhart of the Halladale Group, invested in 12 shopping centres in the UK, the statement continued.

However, unknown to investors, Lockhart's employer, Halladale, appears to have owned one of the shopping centres, which was sold to the CReAM Fund at "questionable values", according to the statement. All of the shopping centres eventually liquidated, costing investors millions of dollars, it said. Lockhart, through a new entity known as New River, in 2008 purchased the assets of CReAM Fund at distressed prices. Again, none of the proceeds went to the original investors, it alleges.