Gary Crittenden paid the settlement, without admitting or denying the
allegations, after the SEC charged him, and former head of investor relations
Arthur Tildesley Jr., with making misleading statements in an SEC filing.
Citigroup was charged with misleading investors about its exposure to sub-prime
The financial services business paid $75m to settle its charge, while
Tildesley Jr. paid $80,000.
“Even as late as fall 2007, as the mortgage market was rapidly
deteriorating, Citigroup boasted of superior risk management skills in reducing
its subprime exposure to approximately $13 billion. In fact, billions more in
CDO and other sub-prime exposure sat on its books undisclosed to investors,”
said Robert Khuzami, director of the SEC’s division of enforcement.
“The rules of financial disclosure are simple – if you choose to speak, speak
in full and not in half-truths.”
The SEC alleged that Crittenden and Tildesley Jr. were “repeatedly” provided
with information about the full extent of Citigroup’s sub-prime exposure. In
approving SEC disclosures, they caused its filings to mislead investors.
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Does Darwin's theory apply to taxation? Colin ponders...
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges