CRIMES AND CORRUPTIONS OF THE NEW WORLD ORDER NEWS (mparent7777_1) wrote,
CRIMES AND CORRUPTIONS OF THE NEW WORLD ORDER NEWS
mparent7777_1

Citigroup to be charged by Cuomo, faces SEC probe

Fri Aug 1, 2008 4:14pm EDT

By Joseph A. Giannone and Jonathan Stempel

NEW YORK (Reuters) - New York Attorney General Andrew Cuomo plans to imminently charge Citigroup Inc, accusing it of fraudulently marketing and selling auction-rate securities, and destroying documents that had been subpoenaed.

In a letter on Friday to the largest U.S. bank by assets, David Markowitz, chief of the state's investor protection bureau, accused Citigroup of having "repeatedly and persistently committed fraud" by falsely representing to customers that auction-rate debt was safe, liquid and the equivalent of cash.

He also charged that Citigroup destroyed audiotapes of phone calls on auction-rate debt that were subject to a April 14 subpoena. The New York-based bank learned in mid-June about the destruction, but failed to tell Cuomo's office until June 30, the letter said.

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Tags: citigroup, economy, new york, sec
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