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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
Options Network
30 Sep 14 12:38:35
$C what about that C OCT.03 CALL 52 from 0.34-0.35... now at 0.5s - @OPTIONSFLUX KABOOOM http://t.co/HsJMP4l1iX
angel p vazquez b
30 Sep 14 12:31:19
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/A2P8fnHLlC
john smith
30 Sep 14 12:31:17
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/DRJuZuhD9O
NASDAQ
30 Sep 14 12:31:07
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/FIpUnMDSYI
Options Network
30 Sep 14 12:23:37
$C from chat: "[3:22 PM] nanccee8: C calls working thx swat" Thx to @OptionsFlux http://t.co/phzDDuum0Z
kenr0966
30 Sep 14 12:21:12
RT @SwatOptions: $GS $C $JPM $BAC just suggest to put them on watch http://t.co/YUg8fwM7kj
Options Network
30 Sep 14 12:20:20
$C from chat: "3:19 PM] tjmolly1: booooom C. thanks options flux" @OptionsFlux http://t.co/fsvnQ3Pgn7
Options Network
30 Sep 14 12:19:39
$C gave you from @OptionsFlux, C OCT.03 CALL 52 at 0.34-0.35 - now at 0.45x0.46 http://t.co/ktWmSbq90y
Bloomberg Deals
30 Sep 14 12:19:15
$BX hires $GS, $C to run IPO for cement co. Summit Materials http://t.co/0nqIhtu8GU
Jeffrey C. McCracken
30 Sep 14 12:19:15
$BX hires $GS, $C to run IPO for cement co. Summit Materials http://t.co/KjkHl5uoIq
Options Network
30 Sep 14 12:17:19
$GS $C $JPM $BAC just suggest to put them on watch http://t.co/YUg8fwM7kj
Greg Roumeliotis
30 Sep 14 12:10:34
RT @LesliePicker: @blackstone's cement company Summit Materials said to plan IPO this year, with valuation of $2.5 bln, w/ $GS & $C @ak_mna…
CC-Management Jobs
30 Sep 14 12:10:07
CareerCast: Deal In the Works: EBay to Spin-Off Lucrative PayPal Unit http://t.co/aoktqaAt3T via @daily_finance $EBAY $AXP $C
Leslie Picker
30 Sep 14 12:06:58
@blackstone's cement company Summit Materials said to plan IPO this year, with valuation of $2.5 bln, w/ $GS & $C @ak_mna @devinbanerjee
CC-Finance Jobs
30 Sep 14 12:05:07
CareerCast: Deal In the Works: EBay to Spin-Off Lucrative PayPal Unit http://t.co/CcFzT1SrRn via @daily_finance $EBAY $AXP $C
CC-Legal Jobs
30 Sep 14 12:00:33
CareerCast: Deal In the Works: EBay to Spin-Off Lucrative PayPal Unit http://t.co/KvY4kL2eZR via @daily_finance $EBAY $AXP $C
CC-Accounting Jobs
30 Sep 14 12:00:32
CareerCast: Deal In the Works: EBay to Spin-Off Lucrative PayPal Unit http://t.co/HMPq2KdjYS via @daily_finance $EBAY $AXP $C
Nico Starr
30 Sep 14 11:53:43
@DougKass Are the restrictive govt walls FINALLY coming down for $C? Hearing theyll most likely get CCAR approval for buybacks/Divs next yr
Nico Starr
30 Sep 14 11:52:10
@DougKass Hi Doug, would you buy $C on this dip? I just saw news headline that the SEC grants $C waivers from restricitions accordg to WSJ.
Nico Starr
30 Sep 14 11:50:37
@petenajarian Pete, I just saw news headline that the SEC grants $C waivers from restricitions according to WSJ. More walls coming down?
Options Network
30 Sep 14 11:42:46
$C making higher high / higher low http://t.co/29EgcBkJAt
Market Newswire
30 Sep 14 11:31:50
SEC Grants Citigroup Waivers, Easing Hedge-Fund Curbs - WSJ - http://t.co/jA1mfwOFIs $C #invest #mkt #stocks
Dividend Master
30 Sep 14 11:26:03
Looks like $C getting ready to join $GS in banning some employees from owning individual stox ......
Brad Pehrson
30 Sep 14 11:22:43
Why you should invest like Harvard http://t.co/KUhr344Ied $fb $aapl $twtr $ge $jpm $c $wfc $spx $spy $dji $xom $yelp @marketwatch
Carolyn B Miciano
30 Sep 14 11:21:45
Learn the basics of Options trading - Free course http://t.co/04T4DCIZPa $MA $V $C
Market Int Center
30 Sep 14 11:21:09
Potential Citigroup $C Trade Has 6.24% Downside Protection ( http://t.co/vs4upE4EDT )
dakin campbell
30 Sep 14 11:15:54
SCOOP! Citigroup said to review staff trading rules after Goldman Sachs move $C
Austin Deric
30 Sep 14 11:09:59
@DividendMaster some banks definitely a buy. Some are a value $C $BAC and some are low-growth cash spouting machines $MS $GS $WFC $JPM
Austin Deric
30 Sep 14 11:02:41
@DividendMaster "maybe longs saw $C CEO declaring growth at banks over" been known for years...
Francesco Sciotto™
30 Sep 14 11:01:34
$c$ncm$z$ccjnnyny$cnbjn B
Dividend Master
30 Sep 14 11:01:24
banks from a wall of green a few hours ago to 90% red . maybe longs saw $C CEO declaring growth at banks over ?
Kamakura Corporation
30 Sep 14 10:58:02
U.S. Dollar Cost Of Funds Index Jumps 0.044% To 1.007% At 5 Years, September 29, 2014 $BAC $C http://t.co/jRrXYZwb5J via @salphatrending
@ronnie_ge
30 Sep 14 10:54:57
RT @Stocktweets_IND: #investors #autotrading #stockmarket 10/03/2014 #Autotrading Updates http://t.co/ti0m9JADoo $baba $fb $lnkd $bac $c $s…
angel p vazquez b
30 Sep 14 10:43:09
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/FnvpZfUavg
john smith
30 Sep 14 10:43:07
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/arzkGXvKPS
NASDAQ
30 Sep 14 10:43:05
$C - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/AqX9O7fvTr
Sasi M Motaparthy
30 Sep 14 10:42:42
#investors #autotrading #stockmarket 10/03/2014 #Autotrading Updates http://t.co/y3viqIjSt1 $baba $fb $lnkd $bac $c $spy $gld $aapl $tsla
StockTweets
30 Sep 14 10:42:42
#investors #autotrading #stockmarket 10/03/2014 #Autotrading Updates http://t.co/ikwltqHYF8 $baba $fb $lnkd $bac $c $spy $gld $aapl $tsla
stocktweets
30 Sep 14 10:42:42
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STOCKTWEETS
30 Sep 14 10:42:41
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STOCKTWEETS
30 Sep 14 10:42:41
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Ximena Alarcon Lissa
30 Sep 14 10:39:56
Deal In the Works: EBay to Spin-Off Lucrative PayPal Unit http://t.co/TiJfjl75rm via @daily_finance $EBAY $AXP $C
Investors Hangout
30 Sep 14 10:30:50
danrocks: $MTVX Picking Up MOMO $TA $JNUG $TASR $C $TSLA http://t.co/k5kMLGyNtV
Investors Hangout
30 Sep 14 10:30:25
danrocks: $MTVX Picking Up MOMO $TA $JNUG $TASR $C $TSLA http://t.co/6j4T3A38FH
danrocks
30 Sep 14 10:15:50
$MTVX Picking Up MOMO $TA $JNUG $TASR $C $TSLA http://t.co/CTjwADxoeO
Investors Hangout
30 Sep 14 10:15:22
DennyT: C Press Releases $C $XLP $JNUG $GOOGL $AMBA http://t.co/QGcGUAXLdg
Investors Hangout
30 Sep 14 10:14:18
DennyT: C Press Releases $C $XLP $JNUG $GOOGL $AMBA http://t.co/6IfFaCGSzm
DennyT
30 Sep 14 10:09:45
C Press Releases $C $XLP $JNUG $GOOGL $AMBA Sell?,TA,Open,Headlines,Hitting Buzz Stock Quote http://www.otcmar http://t.co/01vEbVkSOe
PennyStock Zone
30 Sep 14 10:07:42
Best day trading DVD by Fous Alerts check it out! http://t.co/HJ6WDp65fM #stocks #trading #nasdaq #nyse $AMPE $CXO $VZ $IEP $GBX $JBLU $C
Carolyn B Miciano
30 Sep 14 10:04:03
Free guide to using oscillators http://t.co/7RSXgoGLMx $MA $V $C
				
				
  +Follow October 3, 2013 10:27AM
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