NY to file fraud charges against Citigroup

[antigop]

http://money.cnn.com/2008/08/01/news/companies/citigroup_cuomo/index.htm?postversion=2008080117

New York state Attorney General Andrew Cuomo said Friday that his office intends to file charges against Citigroup for the alleged fraudulent marketing and sale of troubled auction-rate securities to everyday investors.

Cuomo outlined his intentions in a letter to Citigroup's general counsel dated Friday, saying that charges were imminent.

In the letter, the New York Attorney General's office alleged that the nation's largest bank "has repeatedly and persistently committed fraud by material misrepresentations and omissions" in the underwriting, distribution and sale of auction rate securities, touting them as safe, cash-equivalent investments.

Cuomo's office claimed that the sale of these securities had "a severe detrimental impact" on tens of thousands of Citigroup customers.

The AG also claimed that Citigroup "destroyed recordings of telephone conversations" related to the marketing and sale of auction-rate securities.

[MadrasT]

1. I despise Citigroup

I hope the rat bastards get what's coming to them. They totally screwed me around on a credit card I used to have there. I ended up taking a small loan against my 401K just to pay the f-ing thing off so I would never have to deal with those crooks again.

[DavidMS]

2. Thats great

If fraud or other criminal activity has occurred Citi needs to be punished. Because otherwise they are effectively encouraged to continue committing fraud.

It would also be better if the Cuomo would just file charges and then announce it.

[TroubleMan]

3. Go get those Saudis.

The Saudis are already getting enough money from us just from oil. They don't need to cheat us out of more money with their company, Citigroup.