CITIGROUP REIMBURSES HNW FOR BAD INVESTMENTS

News Team

Compliance Matters

9 September 2013

Citigroup has been ordered to pay $10.75 million to a high-net-worth former customer over his 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 reported a profit for the second quarter of 2013.

The US Financial Industry Regulatory Authority (FINRA) 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. Citigroup’s publicity machine told Reuters: “We are disappointed with the award, which was not supported by the facts.”

Fiorilla originally went to court in 2010, seeking $19.5 million in damages, according to the ruling. Citigroup, he alleged, was grossly negligent and failed to supervise its broker.