Wednesday, June 28

Hall of Shame: Citigroup Provided Incomplete Blue Sheet Data for 15 Years

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

July 12, 2016

Trading

Source: www.sec.gov

The Securities and Exchange Commission today announced that Citigroup Global Markets has agreed to pay a $7 million penalty and admit wrongdoing to settle charges that a computer coding error caused the firm to provide the agency with incomplete "blue sheet" information about trades it executed.

"Broker-dealers have a core responsibility to promptly provide the SEC with accurate and complete trading data for us to analyze during enforcement investigations," said Robert A. Cohen, Co-Chief of the SEC Enforcement Division's Market Abuse Unit. "Citigroup did not live up to that responsibility for an inexcusably long period of time, and it must pay the largest penalty to date for blue sheet violations."

Other SEC cases involving failures to provide complete blue sheet data:

  • Credit Suisse Securities (USA) LLC paid a $4.25 million penalty in September 2015
  • OZ Management LP paid a $4.25 million penalty in July 2015
  • Scottrade paid a $2.5 million penalty in January 2014