What allegations were made regarding Citigroup Global Markets Inc. (CGMI), and why are they making payments to affected shareholders?
According to a NYSE Hearing Board Decision CGMI permitted frequent trading and “deceptive market timing” in mutual funds to the detriment of long-term shareholders in those funds. On July 13, 2007, CGMI consented to the entry of this Decision by the NYSE, without admitting or denying the Decision’s findings. The Decision addressed activity between January 2000 and September 2003 (the “Relevant Period”) and found, among other things, that certain registered representatives employed by CGMI conducted numerous market timing trades, a number of which were executed through the use of deceptive practices, thereby enabling the “market timing Financial Consultants” and customers to evade detection by mutual funds.
