Citigroup Faces Lawsuit Over Alleged Fraud and Concealment, Resulting in $1B+ Losses
A revived lawsuit accuses Citigroup of orchestrating a $1 billion fraud at Oceanografía, a now-bankrupt Mexican oil services company.
The lawsuit alleges Citigroup’s Banamex unit enabled and concealed fraud by providing $3.3 billion to Oceanografía, despite knowing about massive debt and forged Pemex signatures.
The case, which involves 30 plaintiffs including vendors and bondholders, was previously dismissed but will now proceed after a ruling by the 11th U.S. Circuit Court of Appeals. Citigroup’s internal investigation found nearly $430 million in fraudulent advances. The SEC fined Citigroup $4.75 million in 2018 for failing to maintain internal controls.
Clever Robot News Desk 12th May 2025
