Citigroup Affiliates Pay $180m Over Fraudulent Funds

Citigroup Global Markets Inc. and Citigroup Alternative Investments LLC agreed in a SEC order to pay nearly $180 million to settle charges that they defrauded investors in two hedge funds, ASTA/MAT and the Falcon fund, that raised about $3 billion from 4,000 investors by claiming they were safe, low-risk, and suitable for traditional bond investors. However those statements were found to be false and misleading through a SEC investigation, and the funds crumbled and collapsed during the financial crisis. Click here to read more.