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Citigroup said Wednesday it fired twelve employees in Mexico, including four senior executives, in connection with a $400 million fraud involving its Banamex unit.

Citigroup said in February it had discovered at least $400 million of fraudulent, short-term loans from Banamex to the oil-services firm Oceanografía.

Oceanografia used phony invoices for $585 million as collateral for loans. Only $185 million could be verified.

Two of the managing directors were business heads at Banamex.

The chief executive of Oceanografía, Amado Yáñez Osuna, is under house arrest in Mexico.

Citigroup hasn’t fired any U.S.-based employees in connection with the fraud, but the internal investigation isn’t finished.

Citigroup said in February it had discovered at least $400 million of fraudulent, short-term loans from Banamex to the oil-services firm Oceanografía.

Oceanografia used phony Pemex invoices for $585 million as collateral for loans. Only $185 million could be verified.

The fraud trigggered a U.S. investigation by the FBI and the U.S. Attorney’s Office in Manhattan.

A separate SEC investigation is focusing in part on whether deficiencies in Citibank’s internal controls contributed to the fraud.

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From the FCPA Blog New Service  (c) 2014 All Rights Reserved