Client Affairs
Citigroup Ordered By US Regulator To Pay $10.7 Million To Former Client

Citigroup has been ordered to pay $10.75 million to a former
customer over losses from investments in Royal Bank of Scotland
Group, the
UK-listed bank which has been partly owned by the UK taxpayer
since the 2008
financial crash, media reports said. (RBS last week reported a
profit for the second
quarter of 2013.)
The US Financial Industry Regulatory Authority arbitration
panel also ordered Edward Mulcahy, a former Citigroup broker, to
pay $250,000
to the investor, John Leopoldo Fiorilla, according to a July 30
ruling.
"We are disappointed with the award, which was not
supported by the facts," a Citigroup spokesperson was quoted by
Reuters as saying.
This publication was unable to reach Citigroup for further
information
as at the time of going to press.
Fiorilla filed the case in 2010, seeking $19.5 million in
damages, according to the ruling. Citigroup, he alleged, was
grossly negligent
and failed to supervise its broker. Mulcahy left Citigroup in
2009. He recently
retired from Morgan Stanley. Efforts to locate him were not
successful, Reuters said.