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Citigroup (C) Fined $30 Million for Leaking Confidential Information to SAC

  +Follow October 3, 2013 10:27AM
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Investment bank Citigroup (C) was hit with a $30 million fine for supplying secret information to several hedge funds in what appears to be an insider trading scheme concerning the stock of Apple, Inc. (AAPL) . Aside from T. Boone Price, Citadel, and GLC Partners, the most notable hedge fund included in the allegations is SAC Capital, the $15 billion fund that is already facing extensive criminal charges from the US government concerning “rampant insider trading.”

Investigators assert that analyst Kevin Chang from the Taiwanese branch of Citigroup leaked a December 2012 report to the hedge funds. The report included data from an Apple iPhone manufacturer that indicated iPhone production was expected to drop. At least three funds executed sales of Apple stock between the leak and the official publishing of the Citigroup report.

SAC is already in hot water with regulators. SAC’s CEO, Steven. A. Cohen, faces charges from the Securities and Exchange Commission for failing to adequately supervise traders in his employ who were engaging in unethical trading. The scope of the insider trading at SAC was described by Manhattan US Attorney Preet Bharara as “substantial, pervasive and on a scale without precedent in the hedge-fund industry.”

Both SAC and Citigroup have faced intense scrutiny from regulators over the past few months. In August Citigroup was forced to settle out with disgruntled investors for $590 million for hiding toxic assets.

It is unclear if the Stamford, Conn.-based SAC will face any further charges stemming from acting on the Apple leak and subsequent stock dump.

Citigroup dropped .55 percent to hit $48.44 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for c
Bulls vs Bears
27 Aug 14 21:09:01
$C: Citigroup Fined $1.85M by FINRA for Bad Pricing & Negligence http://t.co/cIENMTam5B http://t.co/wfZNJyk734
Invest Up
27 Aug 14 21:08:12
Our tactical view of corn (ETF: $CORN, futures: $C) is still constructive. Expected return 22.49%. Please RT. http://t.co/s6rySybBG8
Rosner Stocks
27 Aug 14 21:02:08
$FITX % Change http://t.co/DCLX1JldQf Also See: $WTSL $C $XLF $CVX ~
KattieBertolde8
27 Aug 14 20:48:27
☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #iphone #sougofollow #ANDROID $c{y
PennyStock Zone
27 Aug 14 20:46:40
Replicate multimillionaire strategy easy to copy! Subscription is cheap at twice the price! http://t.co/Ho9ydXHTWl $C $GS $YHOO $AOL $GTAT
Stockaholics
27 Aug 14 20:23:10
REVI closed up 44.5% today! Special Update: http://t.co/6o15AzsDr3 $BMSN $C $GE
H James H
27 Aug 14 20:04:38
@MichaelJLev @MelendezSports @A_Parsons67 i disagree - he is a role model for everything $C. Shaw, OJ, Cheatey Petey, Bush. #just$c
Jon Wirth
27 Aug 14 19:59:13
seems legit “@MoustacheNation: MN cautions against leaping to conclusions re $C & Shaw http://t.co/AJft6iE8xq”
BBozuwaRolandoo
27 Aug 14 19:57:49
RT @CoteBarnabas754: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #TEAMFOLLOWBACK #gameinsight $…
KKinsmanKhoo
27 Aug 14 19:52:04
RT @CoteBarnabas754: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #TEAMFOLLOWBACK #gameinsight $…
VirgilioBensen4
27 Aug 14 19:48:27
RT @CoteBarnabas754: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #TEAMFOLLOWBACK #gameinsight $…
Del__an_tyAlyse
27 Aug 14 19:44:26
RT @CoteBarnabas754: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #TEAMFOLLOWBACK #gameinsight $…
Master Martinez
27 Aug 14 19:24:41
@thisisloso lol fuckin $C never changes...
BayouIrish
27 Aug 14 19:22:21
@FatherSorin we're not, Padre. But the invented story? I guess by inventing it, $C thought they could one-up the Irish.
Biz News Pioneer
27 Aug 14 19:09:08
$C: Citigroup Inc (C) and the $978000 Bet http://t.co/oV7c1Rqj0x http://t.co/2udmcirEAF
Sean Pattison
27 Aug 14 18:59:00
Classic $C.
Ripped Torn
27 Aug 14 18:53:24
@JLyonsFundMgmt: Financials were relatively weak today...bear-flaggin it too...looking lower. $C $JPM $GS $BAC $FAS $XLF
Mohamud
27 Aug 14 18:52:31
Is $C, $BAC buy or sell? Checkout www.2waytrading,com
Jeff Bailey
27 Aug 14 18:48:42
"@groverules: The fine tradition continues at $C and of course he is team captain. #cheaton #ucla http://t.co/nVYxFXUBgy" #highclassplayers
Chasing Stars
27 Aug 14 18:40:22
$DDD 52Wk High http://t.co/QS44NhS4mu Also See: $YGE $CYCC $C $RIG ~
Chris Cullen
27 Aug 14 18:39:30
RT @MoustacheNation: MN cautions against leaping to conclusions re $C & Shaw http://t.co/BJ61wOx8NM
SparkyDiablo
27 Aug 14 18:38:35
RT @MoustacheNation: MN cautions against leaping to conclusions re $C & Shaw http://t.co/BJ61wOx8NM
Moustache Nation
27 Aug 14 18:37:57
MN cautions against leaping to conclusions re $C & Shaw http://t.co/BJ61wOx8NM
christina perkins
27 Aug 14 18:34:03
$C: Honesty, integrity etc. http://t.co/QQI6ImiEd7 I LOVE THIS SEASON ALREADY cc @hamilt0n #gobruins
Rosner Stocks
27 Aug 14 18:19:15
$DBC Stock Message Board http://t.co/MgBWAtJLlI Also See: $PFE $GRDO $WLT $C ~
bt (terranova)
27 Aug 14 18:14:50
The fine tradition continues at $C and of course he is team captain. #cheaton #ucla http://t.co/ofz3bFGqYQ
Business News Now
27 Aug 14 18:08:59
$C: [video] Unusual Activity: Citi & Cheniere http://t.co/2ZyZPInk8S http://t.co/Y1IDAQvDa7
A L
27 Aug 14 18:06:57
What the hell is this BS talk on $BAC and $C? I like growth, not book value garbage.
Investors Hangout
27 Aug 14 18:01:46
$DB Prev Close http://t.co/2O5Zn4zFEd Also See: $PFE $AA $C $GDXJ ~
Tom Vento
27 Aug 14 17:36:57
@VeniceMase Surprised?? Its $C...
ArXiv math.FA
27 Aug 14 17:34:22
A simple characterization of chaos for weighted composition $C_0$-semigroups on Lebesgue and Sobolev spaces. (... http://t.co/8QwxBx4Kvu
arXiv hep-ph
27 Aug 14 17:34:20
[1408.6465] Zhi-Gang Wang : $D_{s3}^*(2860)$ and $D_{s1}^*(2860)$ as the 1D $c\bar{s}$ states http://t.co/4WYwnJOAIi
Rusty Shackleford
27 Aug 14 17:29:35
You know Mandel said something dumb when U$C homers call him on his dumb ideas defending $C.
RossPorterStats
27 Aug 14 17:16:34
@BruceFeldmanCFB @VeniceMase And just where did he get the $$ to hire him ??? $C !
Justin Nitzkowski
27 Aug 14 17:15:45
“@CollegeGameDay: USC's Josh Shaw admits to lying: http://t.co/FWoIhvzRTv http://t.co/Xe30qukznD” Classic $C
Stock News Updates
27 Aug 14 17:09:06
$C: [video] Buying the banks http://t.co/Hes8hP8HZI http://t.co/rUToFMljHz
Chris Harris
27 Aug 14 16:54:28
RT @Brian_Porreca: You can take the player out of $c, but you can't take $c out of the player. #CheatOn Josh...
Stock Forums
27 Aug 14 16:53:38
$CEF EOD Data http://t.co/Y0syKRaBGt Also See: $DUST $C $RFMD $JO ~
Chasing Stars
27 Aug 14 16:35:13
$C Prev Close http://t.co/HBbsDYFrxv Also See: $GDXJ $XLK $QIHU $INCC ~
Stock Forums
27 Aug 14 16:34:38
$C Last Trade http://t.co/7GCITloMxk Also See: $GT $DRYS $YRCW $JNK ~
Investors Hangout
27 Aug 14 16:34:10
$C 52Wk High http://t.co/XAbc5UQk7t Also See: $F $WNTR $ISIS $PLUG ~
Rosner Stocks
27 Aug 14 16:34:06
$C 52Wk Low http://t.co/8eR4VuOGOr Also See: $XHB $HYG $WMT $UUP ~
Investors Hangout
27 Aug 14 16:28:47
$C Bid Size http://t.co/WdFuN22Cx2 Also See: $CELG $T $XLY $JNUG ~
Brian Porreca
27 Aug 14 16:19:52
Not a big story though. It's not like $c had a chance at anything this year anyway
Brian Porreca
27 Aug 14 16:18:58
You can take the player out of $c, but you can't take $c out of the player. #CheatOn Josh...
Kellie Anne
27 Aug 14 16:14:52
RT @twodc: Ok @uclatheden, anything less than showing up at the $C game with life preservers and hero capes will be a disappointment. #GoBr…
Business Updates
27 Aug 14 16:09:06
$C: Citigroup Fined $1.85M by FINRA for Bad Pricing & Negligence http://t.co/NRH9pMnxdo http://t.co/ihkNbZEqym
B and J
27 Aug 14 16:08:38
Ok @uclatheden, anything less than showing up at the $C game with life preservers and hero capes will be a disappointment. #GoBruins #lieon
Donald van Deventer
27 Aug 14 16:08:07
RT @KamakuraCo: U.S. Dollar Cost Of Funds Index, August 26, 2014 $BAC $C $JPM $WFC http://t.co/ZHhG4eAUgY via @salphatrending
Melo Elias
27 Aug 14 16:02:06
RT @chudogdtd: @JLV178 @Lepus_Himself @CEOofda805 Guess Shaw just wanted to join the $C pool party. #cheaton http://t.co/YHdLCRbFlx
				
				
  +Follow October 3, 2013 10:27AM
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