SEC News
- SEC Charges San Diego-Based Promoter in Penny Stock Scheme June 18, 2013FOR IMMEDIATE RELEASE2013-114 Washington, D.C., June 18, 2013 — The Securities and Exchange Commission today charged a penny stock promoter in the San Diego area for fraudulently arranging the purchase of $2.5 million worth of shares in a penny stock company in an attempt to generate the false appearance of market interest and induce other investors to purch […]
- SEC Charges Two Executives in Ponzi Scheme At Dallas-Based Medical Insurance Company June 17, 2013FOR IMMEDIATE RELEASE2013-113 Washington, D.C., June 17, 2013 — The Securities and Exchange Commission today charged two executives at a Dallas-based medical insurance company with operating a $10 million Ponzi scheme that victimized at least 80 investors. Additional Materials SEC Complaint The SEC alleges that Duncan MacDonald and Gloria Solomon solicited i […]
- Amelia Cottrell Named Associate Regional Director for Enforcement in New York Office June 14, 2013FOR IMMEDIATE RELEASE2013-112 Washington, D.C., June 14, 2013 — The Securities and Exchange Commission today announced the promotion of Amelia A. Cottrell to Associate Regional Director for Enforcement in the agency's New York Regional Office. Ms. Cottrell, who came to the SEC in 2005, has been serving as an Assistant Regional Director in the New York o […]
- Former Mutual Fund Directors Agree to Settle Claims That They Failed to Properly Oversee Asset Valuation June 13, 2013FOR IMMEDIATE RELEASE2013-111 Washington, D.C., June 13, 2013 — The Securities and Exchange Commission today announced a settlement in an enforcement proceeding against eight former directors of five Regions Morgan Keegan open- and closed-end funds that were heavily invested in securities backed by subprime mortgages. The proceeding, which began in December […]
- SEC Charges Revlon with Misleading Shareholders in Going Private Transaction June 13, 2013FOR IMMEDIATE RELEASE2013-110 Washington, D.C., June 13, 2013 — The Securities and Exchange Commission today charged cosmetics and beauty care manufacturer Revlon with violating federal securities laws when the company misled shareholders during a "going private transaction." Additional Materials SEC Order Going private transactions can occur in ma […]
In an April 12, 2011, article from InvestmentNews.com states that Citigroup Inc., the third-biggest U.S. bank, was ordered to pay more than $51 million to a group of investors in its MAT and ASTA municipal-bond hedge funds, which regulators began examining more than two years ago.
The Financial Industry Regulatory Authority arbitrators, which oversees U.S. brokerages, includes $17 million in punitive damages, according to a copy of the panel’s decision on Finra’s website. It’s the third-largest arbitration award by Finra and predecessor NASD since 1988, according to Securities Arbitration Commentator Inc., a Maplewood, New Jersey-based legal publishing and research firm.
The SEC or U.S. Securities and Exchange Commission has questioned former Citigroup brokers as part of a probe into whether the bank misled investors about risks associated with certain debt funds, people familiar with the matter said last year. Citigroup disclosed the inquiry into the MAT and ASTA funds in August 2008, after the funds tumbled to values ranging from 10 cents to 60 cents on the dollar amid souring credit markets early that year.
“We are disappointed with the decision, which we believe is not supported by the facts or law, and we are reviewing our options,” Danielle Romero-Apsilos, a spokeswoman for the New York-based bank, said in an e-mailed statement.
The FINRA arbitrators didn’t explain the reasoning behind their ruling. They ordered Citigroup to pay $21.7 million to patent attorney Gerald Hosier, $8.5 million to Brush Creek Capital LLC, which is owned by Hosier’s family, and $3.9 million to venture capitalist Jerry Murdock Jr., the ruling shows. Among their claims, plaintiffs had accused the bank of breaching a fiduciary duty, contract violation, fraud, breaking Finra rules and supervisory failures.
It was noted in the InvestmentNews.com article that Citigroup said in a regulatory filing last month that “several” investors in funds including MAT and ASTA had filed lawsuits and arbitration claims against the bank, and that many of the disputes are already resolved. The SEC is examining the marketing, management and accounting treatment of the funds, the company said, adding that it is fully cooperating.
If you feel you have been an alleged victim of Citigroup, Inc., or it’s brokers, or you have found yourself in a similar situation, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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