news.cuna.org/articles/107223-news-of-the-competition

News of the Competition

August 18, 2015

WASHINGTON (8/18/15)--Two Citigroup affiliates have been ordered by the Securities Exchange Commission (SEC) to pay nearly $180 million to settle charges of misleading hedge fund investors during the recession (MarketWatch Aug. 17). According to the SEC, the bank misrepresented investments called the ASTA/MAT and Falcon funds, both of which collapsed after initially raising nearly $3 billion in capital for some 4,000 investors. The bank did nothing to warn investors about the funds, and in fact assured clients the investments were solid, despite low levels of capitalization and liquidity, the SEC said. While the Citigroup business units in question have not admitted to any wrongdoing, they have agreed to a censure and to cease and desist from committing further such violations …