Financial Fraud

Former Citigroup Execs Lied to SEC

Three years later, the truth comes out: Citigroup’s former CEO Charles Prince and former senior advisor Robert Rubin allegedly knew of the bank’s skyrocketing losses in subprime-related securities—$200 million in October 2007, to be exact—despite that fact that they claimed otherwise, according to a court filing by the Securities and Exchange Commission. What makes this all more conflicting: Citigroup later received $45 billion in government bailout funds, but paid only $75 million in July to settle SEC allegations that the bank misled investigators. Gary Crittenden, the CFO at the time, and Arthur Tildesley Jr., now the company's head cross marketing, were also fined $100,000 and $80,000 respectively. To add to the furor, more executives, as the investigation proceeds, could be held accountable.