{"id":4141,"date":"2017-01-27T22:28:31","date_gmt":"2017-01-28T04:28:31","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4141"},"modified":"2022-03-25T13:26:18","modified_gmt":"2022-03-25T18:26:18","slug":"sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/","title":{"rendered":"SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, &#038; 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees"},"content":{"rendered":"<p>\t\t\t\t<strong>Citigroup is Accused of Overcharging At Least 60 Investment Advisory Clients <\/strong><br \/>\n<a href=\"https:\/\/www.investorlawyers.com\/citigroup-background-information.html\">Citigroup Global Markets (C) <\/a>will pay $18.3M to resolve Securities and Exchange Commission charges accusing the firm of overbilling clients and misplacing client contracts. According to the regulator\u2019s order, at least 60,000 investment advisory clients were overcharged about $18M in unauthorized fees because Citigroup did not confirm the accuracy of the billing rates in its computer systems compared to the fees noted in client contracts and other documents. The firm also purportedly improperly collected fees even when clients suspended their accounts. The SEC says that the billing mistakes took place over a 15-year period. <\/p>\n<p>The regulator also contends that the investment advisory firm has been unable to locate about 83,000 advisory contracts. Their absence made it impossible for Citigroup to correctly validate whether the fees that clients were billed are the same ones that they negotiated.<\/p>\n<p>The SEC believes that affected clients paid Citigroup about $3.2M in excess fees.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/#more-4141\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Citigroup is Accused of Overcharging At Least 60 Investment Advisory Clients Citigroup Global Markets (C) will pay $18.3M to resolve Securities and Exchange Commission charges accusing the firm of overbilling clients and misplacing client contracts. According to the regulator\u2019s order, at least 60,000 investment advisory clients were overcharged about $18M in unauthorized fees because Citigroup [&hellip;]<\/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":[3820,3752,3801,3760,3741],"tags":[2666],"class_list":["post-4141","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms","category-sec","category-sec-enforcement","category-securities-fraud","tag-cherry-picking"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, &amp; 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees &#8212; Investor Lawyers Blog &#8212; January 27, 2017<\/title>\n<meta name=\"description\" content=\"Citigroup is Accused of Overcharging At Least 60 Investment Advisory Clients Citigroup Global Markets (C) will pay $18.3M to resolve Securities and &#8212; January 27, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, &amp; 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees &#8212; Investor Lawyers Blog &#8212; 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January 27, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/","twitter_card":"summary_large_image","twitter_title":"SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, & 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees &#8212; Investor Lawyers Blog &#8212; January 27, 2017","twitter_description":"Citigroup is Accused of Overcharging At Least 60 Investment Advisory Clients Citigroup Global Markets (C) will pay $18.3M to resolve Securities and &#8212; January 27, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, &#038; 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees","datePublished":"2017-01-28T04:28:31+00:00","dateModified":"2022-03-25T18:26:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/"},"wordCount":565,"keywords":["cherry picking"],"articleSection":["Citigroup","Financial Firms","SEC","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/","url":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-citigroup-pay-18-3m-overbilling-clients-strategic-capital-management-banned-following-1-3m-cherry-picking-scam-10-investment-advisory-firms-settle-pay-play-violation\/","name":"SEC Cases: Citigroup to Pay $18.3M for Overbilling Clients, Strategic Capital Management is Banned Following $1.3M Cherry Picking Scam, & 10 Investment Advisory Firms Settle Pay-to-Play Violation Charges Involving Pension Fund Fees &#8212; 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