Violation Tracker Individual Record

Company: 
Citigroup Global Markets Inc.
Current Parent Company: 
Citigroup
Penalty: 
$1,097,000
Year: 
2014
Date: 
March 18, 2014
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Secondary Offense: 
financial institution supervision failures
Violation Description: 

The Financial Industry Regulatory Authority (FINRA) and BATS Exchange, Inc. jointly ordered Citigroup Global Markets Inc. to pay approximately $1.1 million in connection with short selling ahead of participating in five public offerings of securities, in violation of Rule 105 of Regulation M. The payments included the disgorgement of more than $538,000, plus interest, of profits and improper financial benefits, and approximately $559,000 in fines. Citigroup was also said to have violated supervisory requirements related to Rule 105; and as part of the sanction, the firm was ordered to update its written supervisory procedures for Rule 105 compliance.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Financial Industry Regulatory Authority
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
New York
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
banking & securities
Notes: 

FINRA is a securities industry self-regulatory body authorized by the federal government.

Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.