Citigroup Inc. was ordered to pay clients $3.1 million by an arbitration panel for failing to supervise one of their brokers. The charges against Citigroup were brought after one of their brokers, Scott King, directed a couple into investing in a real estate project. The investors, the Madhany family, invested one million dollars into the project which had eventually gone broke. Before the project went broke, the Madhany's and other investors cosigned a twelve million dollar loan to help fund the project. Once the project went flat, the investors were then faced with paying back the defaulted loan. The arbitration panel also concluded that Citigroup should pay the Madhany's part of the money owed from the loan.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.
To read more please visit: http://www.reuters.com/article/2013/09/17/us-citi-finra-idUSBRE98G03F20130917