Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Citigroup Global Markets. If you suffered losses investing with Citigroup Global Markets, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
Citigroup Global Markets (CRD# 7059) (SEC# 801-3387, 8-8177)
As of September 23, 2020, Citigroup Global Markets’s FINRA BrokerCheck Report contains the following:
541 Regulatory Event Disclosures
4 Civil Event Disclosures
639 Arbitration Disclosures
UPDATE 9/23/2020: According to FINRA’s August 2019 Disciplinary Actions: “Citigroup Global Markets Inc. (CRD #7059, New York, New York) June 20, 2019 – An AWC was issued in which the firm was censured, fined $225,000 and ordered to pay $152,488.59, plus interest, in restitution to customers, which the firm has already paid. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to identify and apply sales charge discounts to certain eligible purchases of unit investment trusts (UITs). The findings stated that this resulted in customers paying excessive sales charges of $152,488.59. The findings also stated that the firm failed to supervise purchases and sales of UITs in two respects. First, the firm failed to establish, maintain and enforce a supervisory system and WSPs reasonably designed to achieve compliance with applicable securities laws, regulations and FINRA rules regarding the crediting of all available sales charge discounts to customers’ eligible UIT purchases. Among other things, the firm had no WSPs that discussed the application of rollover discounts and no surveillance tools to identify available rollover discounts. Second, the firm failed to establish, maintain and enforce a supervisory system and WSPs reasonably designed to supervise UIT trading. The firm’s surveillance alert system to detect switching of UITs and other products inadvertently excluded UITs from consideration, which the firm failed to discover for years. While the firm’s system was not reasonable and created risk of customer harm, no customer harm was identified in the transactions reviewed in this matter. (FINRA Case #2016050947701)
UPDATE 4/11/2020: According to FINRA’s March 2020 Disciplinary Actions: “Citigroup Global Markets Inc. (CRD #7059, New York, New York) January 14, 2020 – An AWC was issued in which the firm was censured, fined $225,000 and required to revise its supervisory system and WSPs. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it effected a short sale for its own account without borrowing the security or entering into a bona fide arrangement to borrow the security, and without documenting its compliance with the locate requirement for short sale transactions. The findings stated that the firm’s failure to obtain locates for these short sales resulted from system issues that failed to recognize short sales when the firm was selling short to facilitate customer orders as principal. The system issues were later resolved. The findings also stated that the firm failed to establish, maintain and enforce written policies and procedures reasonably designed to prevent the execution or display of a short sale order in a covered security subject to a short sale circuit breaker at a price at or below the national best bid. The firm largely relied on compliance filters in its trading platforms to prevent the execution of a short sale order at a price less than or equal to the national best bid during a short sale circuit breaker. However, as the result of separate system issues, the firm executed non-exempt short sale orders subject to circuit breakers at prices at or below the national best bid when it was facilitating customer orders or trading with a firm affiliate. Each of the technology issues related to trades subject to internal executions. The findings also included that the firm failed to report short sale exempt transactions in the NMS stocks to a FINRA trade reporting facility with the appropriate short sale exempt modifier. Each of these instances involved the firm’s failure to include the short sale exempt modifier when it reported the non-media legs of riskless principal transactions to the trade reporting facility. The violations were attributable to the firm’s misunderstanding of the trade reporting requirements. Moreover, a programming error in one of the firm’s trading platforms resulted in the platform’s failure to recognize that the firm was selling short when it was acting as the contra party to a customer trade. As a result, the firm erroneously reported short sales to a FINRA trade reporting facility as long sales. FINRA found that the firm’s WSPs failed to provide guidance as to how the primary supervisor would conduct his or her review for locate compliance for securities that were not on an easy to borrow list. Moreover, the firm’s review process did not call for evidence that reviews were actually conducted. Rather, the WSPs only required documentation for reviews in which the supervisor identified an exception. FINRA also found that the firm’s supervisory system, including its WSPs, did not include supervisory reviews for the accurate reporting of short sales to FINRA trade reporting facilities, including whether transactions were short sales or short sale exempt. (FINRA Case #2015045325201)
Main Office Location
388 GREENWICH STREET
TOWER BUILDING
NEW YORK, NY 10013
UNITED STATES
Mailing Address
REGISTRATION DEPARTMENT
540 CROSSPOINT PARKWAY
GETZVILLE, NY 14068
UNITED STATES
Business Telephone Number
212-816-6000
Direct Owners and Executive Officers
CITIGROUP FINANCIAL PRODUCTS INC., 100% SHAREHOLDER
ARNOLD, EDWARD RAYMOND (CRD#:1876464), CHIEF COMPLIANCE OFFICER – EQUITIES AND EQUITIES DERIVATIVES
CUMMINGS, JOHN W (CRD#:2729018), DIRECTOR
DUNN, DEIRDRE KATHLEEN (CRD#:3265777), DIRECTOR
FLOOD, SCOTT LEROY, CO-GENERAL COUNSEL
KEEGAN, DANIEL LAURENCE (CRD#:2756125), DIRECTOR
KEEGAN, DANIEL LAURENCE (CRD#:2756125), CEO/CHAIRMAN/PRESIDENT
KURSMAN, SCOTT CHARLES (CRD#:2590327), CHIEF COMPLIANCE OFFICER
LEACH, JONATHAN (CRD#:4317415), DIRECTOR
MESHEL, ADAM REID (CRD#:3101145), CO-GENERAL COUNSEL
PALOMAKI, DANIEL SCOTT (CRD#:6817317), PRINCIPAL FINANCIAL OFFICER
PLATT, DANA LYNN (CRD#:6123347), CHIEF COMPLIANCE OFFICER – INVESTMENT ADVISORY BUSINESSES
TROMBETTA, SANTO VITO (CRD#:2068210), PRINCIPAL OPERATIONS OFFICERS (FINOP)
YARBROUGH, TED KIRK (CRD#:2086078), DIRECTOR
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses investing with Citigroup Global Markets and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
Formerly Known As, Aliases, and Affiliates
CITI INSTITUTIONAL CONSULTING, CITI INVESTMENT MANAGEMENT, CITI PERSONAL INVESTMENTS INTERNATIONAL, CITI PERSONAL WEALTH MANAGEMENT, CITI PRIVATE BANK, CITIGROUP ASSET MANAGEMENT, DAVIS SKAGGS INVESTMENT MANAGEMENT, FIRST MADISON ADVISORS, PEACHTREE ASSET MANAGEMENT, SALOMON SMITH BARNEY INC., SB ADVISOR, SMITH BARNEY, SMITH BARNEY ASSET MANAGEMENT, SMITH BARNEY INC., SMITH BARNEY SHEARSON INC., HARRIS UPHAM & CO., INCORPORATED, CITI INSTITUTIONAL CONSULTING, CITI INVESTMENT MANAGEMENT, CITI PERSONAL INVESTMENTS INTERNATIONAL, CITI PERSONAL WEALTH MANAGEMENT, CITI PRIVATE BANK, CITIGROUP ASSET MANAGEMENT, DAVIS SKAGGS INVESTMENT MANAGEMENT, FIRST MADISON ADVISORS, PEACHTREE ASSET MANAGEMENT, SALOMON SMITH BARNEY INC., SB ADVISOR, SMITH BARNEY, SMITH BARNEY ASSET MANAGEMENT, SMITH BARNEY INC., SMITH BARNEY SHEARSON INC., HARRIS UPHAM & CO., INCORPORATED
