Citigroup’s $75 Million Securities Fraud Settlement with the SEC Over Subprime Mortgage Debt Approved by Judge

A federal judge has approved the $75 millionsecurities fraud settlement在花旗集团和美国证券交易委员会之间达到。bob200体育该投资银行被指控误导投资者大约数十亿美元的损失，从涉及次级抵押贷款的高风险资产中造成的损失。SEC表示，尽管持股超过500亿美元，但经纪交易商告诉客户，他们的价格为130亿美元或更低。

美国地方法院法官艾伦·塞加尔·霍维尔（Ellen Segal Huvelle）最初拒绝批准和解，并质疑为什么只有两名花旗集团高管对所谓的不当行为负责。上个月，她说她将接受该协议，但只有在某些条件下。

Under the approved accord, Citigroup must maintain an earnings committee and a disclosure committee for three years. A number of bank officials will also have to certify the accuracy of the earnings scripts and press releases. The revised settlement clarifies that the $75 million penalty is part of a Fair Fund pursuant to Section 308 of the Sarbanes-Oxley Act of 2002. The penalty will be distributed to investors that sustained financial losses because of Citigroup’s alleged misconduct.

Broker-dealers and their representatives can be held liable for misrepresenting or not presenting all material facts to an investor about his/her investment if that client ends up sustaining financial losses. By agreeing to settle, Citigroup is not denying or admitting to the allegations.

Related Web Resources:

Judge OKs Citigroup-SEC Accord on Mortgages, ABC News, October 19, 2010
Judge approves Citi’s $75M settlement with SEC, Bloomberg Businessweek, October 19, 2010
Read the SEC Complaint（PDF）

Citigroup Settles Subprime Mortgage Securities Fraud Claims for $75 Million, Stockbroker Fraud Blog, August 3, 2010
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