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Citibank scams


Introduction of citi bankCiti is one of the major U.S. financial services companies. Citigroup was created in 1998 after the merge between Citicorp and Travelers. Citicorp comes from the City Bank of New York, founded in 1812. Citigroup is based in 140 countries and has about 200 million customers. In 2009, Citi reported a net loss of $1.6 billion. Vikram Pandit is the Chief Executive Officer of Citi since December 11, 2007. Prior to that, he was CEO of Citi's Institutional Client Group. Before joining Citi, Vikram Pandit was President and Chief Operating Officer of Morgan Stanley's institutional securities and investment banking businesses. The City Bank Ltd. was established with a specific vision and some missions. They are-


To be the leading bank in the country with best practices and highest social commitment.


To contribute to the socioeconomic development of the country. To attain highest level of customer satisfaction through extension of services by dedicated and motivated team of professional. To maintain continuous growth of market share ensuring quality. 2

To maximize banks profits by ensuring its steady growth. To maintain the high moral and ethical standards. To ensure participative management systems and empowerment of human resources.

HISTORYCitigroup ' was founded as City Bank of New York in 1812 and remained a large regional bank until October 1998. Sandy Weill, then CEO of The Travelers Group an insurance company announced a $76 billion agreement to merge with Citigroup to form a new financial services conglomerate. It took only two years for the merger to pass federal law since the 1933 Glass-Steagall Act prevented banking and insurance companies from ever becoming one entity. As the new CEO of Citigroup, Sandy Weill was now at the helm of one of largest banking institutions in the world with over 300,000 employees and operations in over 120 countries. Popular brand names included CitiCards, CitiFinancial, CitiMortgage, Primerica, Salomon Brothers, Smith Barney, Diners Club and CitiCapital. Citigroup became the worlds first global financial supermarket where banking, brokerage and insurance were all held under the control of one organization. Citigroup is organized into four major segments; Consumer, Banking, Global Cards, Institutional Client Group, and Global Wealth Management. Citigroup offers a wide range of products from retail banking, credit card services, and mortgage loans to global transaction services, M&A financing, and corporate lending. Citigroup is currently the largest bank in the United States with over US$600 billion in deposits and assets under management of over US$1.2 trillion. Citigroups fortunes continued to blossom during Sandy Weills tenure and even during the market downturn in 2002. On October 1st, 2003 Chuck Prince replaced Sandy Weill as CEO of Citigroup and for the next several years successfully continued to grow the business and achieve record profits and earnings. Citigroups stock continued to rise during Chuck Princes tenure. Citigroup stock rose from $47.00 in 2003 to a high of a $54.51 in 2007.


Nigerian Accused in Scheme to Swindle Citibank:Swindles in which someone overseas seeks access to a persons bank account are so well known that most potential victims can spot them in seconds. But one man found success by tweaking the formula, prosecutors say: Rather than trying to dupe an account holder into giving up information, he duped the bank. And instead of swindling a person, he tried to rob a country of $27 million. To carry out the elaborate scheme, prosecutors in New York said on Friday, the man, identified as Paul Gabriel Amos, 37, a Nigerian citizen who lived in Singapore, worked with others to create official-looking documents that instructed Citibank to wire the money in two dozen transactions to accounts that Mr. Amos and the others controlled around the world. The money came from a Citibank account in New York held by the National Bank of Ethiopia, that countrys central bank. Prosecutors said the conspirators, contacted by Citibank to verify the transactions, posed as Ethiopian bank officials and approved the transfers. Mr. Amos was arrested last month as he tried to enter the United States through Los Angeles, a prosecutor, Marcus A. Asner, said in Federal District Court in Manhattan. Mr. Amos, who was charged with one count of conspiracy to commit bank and wire fraud, told a federal magistrate judge, Im not guilty, sir. The judge, Andrew J. Peck, ordered him detained pending a further hearing. If convicted, he could face up to 30 years in prison, prosecutors said.


The fraud was uncovered after several banks where the conspirators held accounts returned money to Citibank, saying they had been unable to process the transactions, and an official of the National Bank of Ethiopia said that it did not recognize the transactions, according to a complaint signed by an F.B.I.agent, Bryan Trebelhorn. A Citigroup spokeswoman said: We have worked closely with law enforcement throughout the investigation and are pleased it has resulted in this arrest. Citi constantly reviews and upgrades its physical, electronic and procedural safeguards to detect, prevent and mitigate theft. A spokesman for the Ethiopian Embassy in Washington said, We are aware of this unfortunate story. He said the embassy was not involved in the legal proceedings, and declined further comment. Officials at the National Bank of Ethiopia could not be reached by phone for comment. Prosecutors said the scheme began in September, when Citibank received a package with documents purportedly signed by officials of the Ethiopian bank instructing Citibank to accept instructions by fax. There was also a list of officials who could be called to confirm such requests. The signatures of the officials appeared to match those in Citibanks records and were accepted by Citibank, the complaint says. In October, Citibank received two dozen faxed requests for money to be wired, and it transferred $27 million to accounts controlled by the conspirators in Japan, South Korea, Australia, China, Cyprus and the United States, the complaint says. Citibank called the officials whose names and numbers it had been given to verify the transactions, prosecutors said. The numbers turned out to be for cell phones in Nigeria, South Africa and Britain used by the conspirators. Citibank, in its investigation, later determined the package of documents had come via courier from Lagos, Nigeria, rather than from the offices of the National Bank of Ethiopia, in Addis Ababa. Citibank has credited back the lost funds to the National Bank of Ethiopia, said one person who was briefed about the situation. 5

Ex-Smith Barney Adviser Pleads Guilty to Securities Fraud in $3.25M Scam to Bilk Citibank and Firm Clients:Sanjeev Jayant Kumar Shah, a former Smith Barney financial services adviser, has pleaded guilty to 1 count of securities fraud & three counts of wire fraud over his involvement in a securities scam to bilk clients of Citibank & his firm. Shah was charged with diverting about $3.25 million from a foreign bank client and fabricating documents that he claimed were from bank representatives. He is also accused of falsely saying that the transfers were required for bond purchases and that he would send statements showing these purchases. Prosecutors say that he attempted to cover up the scam by telling clients that a computer mistake had kept the bonds from showing up online bank statements and that had had bought the bonds for the bank. The securities fraud charge comes with a 20 yr maximum penalty. Each wire fraud charge carries a maximum 30 yrs in prison penalty+fine. Citigroup says that it was the 1 that brought the case to the attention.

Securities Fraud:

Our securities fraud lawyers are committed to helping our clients recover their financial losses. The most common investor claims against brokers and investment advisers can involve issues such as: Unsuitability Registration violations Margin account abuse Unauthorized trading Breach of fiduciary duty Breach of contract Failure to execute trades Overconcentration Negligence Churning Misrepresentation and omissions Failure to supervise 6

CITIBANK CAUGHT IN FINANCE FRAUD AT GLOSCON SOLUTIONAnother Citibank mess! - This time in India - Fraud and cheating complaint filed in Police Station One of the World's largest Bank is again headed in trouble and this time in India. This should be an eye opener for all businesses that are having Citibank Account and dealing with Inward International Transfers. In this particular matter, Citibank assured a very low commission rate to win corporate business and in real banking transactions when they happened, they charged higher commissions without any prior consent from business. An application to register F.I.R against Citibank under section 420, 120b, 406 Criminal Procedure Code was submitted at Navrangpura, Ahmedabad police station on 21 June 2008 at 8:45 PM Indian Standard Time. This incident happened with Gloscon Solutions Pvt Limited, a 100% EoU, an Open Source Web 2.0 Software Development firm and and a global leader in Drupal CMS implementation. Citibank Ahmedabad Team, Head Office in Chennai and their Grievance Cell have not cooperated in this matter to provide right answers. It is noteworthy that while Grievance cell was absolutely non-functional and did not act, Citibank Ahmedabad office changed 3 Relationship Managers(Mr. Himanshu Mehta, Mr. Biju Thomas, Mr. Yogesh Mehta) in span of 20 days in this matter. The newest manager Mr. Yogesh Mehta approached Gloscon Solutions Pvt Limited on 18th June 2008 and even suggested to forget the matter and look towards future while this appears to be a multi crore scam by Citibank. Himanshu Mehta, the first