{"id":1317,"date":"2013-09-17T12:25:09","date_gmt":"2013-09-17T12:25:09","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/09\/finra_arbitration_panel_orders_1"},"modified":"2022-03-10T16:38:28","modified_gmt":"2022-03-10T22:38:28","slug":"finra-arbitration-panel-orders-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-arbitration-panel-orders-1\/","title":{"rendered":"FINRA Arbitration Panel Orders Citigroup to Pay Senior Investor Couple $3.1M for Alleged Broker Fraud Related to \u201cSelling Away\u201d Practice"},"content":{"rendered":"

\t\t\t\tCitigroup Inc. (C) <\/a>now has to pay Dr. Nasirdin Madhany and Zeenat Madhany $3.1 million over claims that the financial firm failed to properly supervise a broker, which caused the couple to sustain over $1 million losses. The broker is accused of directing them to invest in real estate developments that later went sour.<\/p>\n

In 2010, the couple filed a FINRA arbitration<\/a> case alleging fraud, negligence, and other wrongdoings related to over $1 million in real estate investments they made between ’04-and ’07. The Madhanys, who are senior investors, were customers of then-Citigroup worker Scott Andrew King, who referred them to politician Lawton “Bud” Chiles III. The latter was looking for investors for a number of real estate projects. King, who allegedly had a conflict of interest (that he did not disclose) from buying two condominiums from Chiles at a discount, is said to have connected the couple and the politician without Citigroup’s knowledge. <\/p>\n

The Madhanys invested in two real estate projects, which began to have problems in 2007 when the US housing market failed and that is when the couple lost their money. Also, they, along with other investors, had signed personal loan guarantee related to a $12 million loan on one of the projects. When the loan defaulted in 2009, Wachovia sued all of them. Last year, a court submitted a $10 million judgment against the investors, with each person possibly liable for the whole amount.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Citigroup Inc. (C) now has to pay Dr. Nasirdin Madhany and Zeenat Madhany $3.1 million over claims that the financial firm failed to properly supervise a broker, which caused the couple to sustain over $1 million losses. The broker is accused of directing them to invest in real estate developments that later went sour. In […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3798,3820,3739,3955,3803],"tags":[],"class_list":["post-1317","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-citigroup","category-finra","category-selling-away","category-senior-investors"],"yoast_head":"\nFINRA Arbitration Panel Orders Citigroup to Pay Senior Investor Couple $3.1M for Alleged Broker Fraud Related to \u201cSelling Away\u201d Practice — Investor Lawyers Blog — September 17, 2013<\/title>\n<meta name=\"description\" content=\"Citigroup Inc. 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