Citigroup Faces Fraud Suit Claiming $1.1 Billion in Losses
- Investors in Mexican oil services firm sue over loan schemes
- Bank fired at least 12, cut 2013 profit by $235 million
A Citibank branch in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Citigroup Inc. was sued for fraud by investors and creditors of a bankrupt Mexican oil services firm over claims they were harmed by a loan scheme that also led the bank to cut 2013 profit by $235 million and fire at least a dozen people.
Citigroup’s loans led to the 2014 collapse of the Mexican firm, Oceanografia SA, and caused Dutch lender Rabobank Groep, with investors and creditors, to lose at least $1.1 billion, according to the lawsuit filed Friday in Miami federal court. Rabobank and other investors separately filed a negligence suit in Delaware state court against auditor KPMG LLP.