Citigroup to Pay $208M to Settle Charges

Citigroup Inc. has agreed to pay $208 million to settle fraud charges brought by the Securities and Exchange Commission against two of the company's units, related to the creation and operation of an affiliated transfer agent that has served the Smith Barney family of mutual funds since 1999.

The SEC said Tuesday it found that Citigroup Global Markets Inc. and Smith Barney Fund Management LLC, the investment adviser to the mutual funds, misrepresented and omitted facts when recommending to the funds' boards that the funds change from a previous third-party transfer agent to an agent that was a Citigroup affiliate.

See full Article.