{"id":584,"date":"2009-10-12T12:00:38","date_gmt":"2009-10-12T12:00:38","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/10\/citigroup_ordered_to_pay_60000"},"modified":"2022-03-09T15:57:16","modified_gmt":"2022-03-09T21:57:16","slug":"citigroup-ordered-to-pay-60000","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/citigroup-ordered-to-pay-60000\/","title":{"rendered":"Citigroup ordered to pay $600,000 FINRA fine for inadequate supervision that may have allowed foreign clients to avoid paying taxes on dividends"},"content":{"rendered":"

\t\t\t\tCitigroup, Inc.<\/a> has agreed to pay a $600,000 Financial Industry Regulatory Authority fine to settle claims that its alleged inadequate supervision of certain derivative transactions<\/a> between 2002 and 2005 allowed a number of foreign clients to avoid paying taxes on dividends. <\/p>\n

The way this allegedly worked is that during a period of dividend payments, the customer would sell stock to Citigroup. The bank would pay the client an income equal to the dividend. It would also pay any share price increase. <\/p>\n

FINRA is accusing Citigroup of failing to control trades and failing to prevent improper trades<\/a>, both internally and with trading partners. The dividend equivalent that certain foreign Citigroup clients obtained was not considered subject to withholding taxes. Citigroup’s strategy was allegedly intended to lower its tax bill.<\/p>\n

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

Citigroup, Inc. has agreed to pay a $600,000 Financial Industry Regulatory Authority fine to settle claims that its alleged inadequate supervision of certain derivative transactions between 2002 and 2005 allowed a number of foreign clients to avoid paying taxes on dividends. The way this allegedly worked is that during a period of dividend payments, the […]<\/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":[3820,3752,3739],"tags":[],"class_list":["post-584","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms","category-finra"],"yoast_head":"\nCitigroup ordered to pay $600,000 FINRA fine for inadequate supervision that may have allowed foreign clients to avoid paying taxes on dividends — Investor Lawyers Blog — October 12, 2009<\/title>\n<meta name=\"description\" content=\"Citigroup, Inc. has agreed to pay a $600,000 Financial Industry Regulatory Authority fine to settle claims that its alleged inadequate supervision of — October 12, 2009\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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