Lawsuit Accuses Citigroup of Manipulating and Hiding Fraudulent Activities, Resulting in Over a Billion Dollars in Damages
Keep Swimming in the Turbulent World of FinanceWelcome back to our daily hit! Today we've got a juicy piece of news for you — Citigroup is back in the spotlight once more. A lawsuit first filed nine years ago has been revived following a ruling by a three-judge panel of the 11th U.S. Circuit Court of Appeals. The lawsuit accuses Citigroup of orchestrating a $1 billion fraud at Mexican oil and gas services company, Oceanografía.
The case, which has been through four complaints, claims that Citigroup's Banamex unit enabled and concealed the fraud. Oceanografía was working as a drilling contractor for Mexico’s state oil firm, Pemex, and Citigroup provided approximately $3.3 billion to the company between 2008 and 2014, despite its knowledge of the company’s immense debt and forged signatures on Pemex authorization forms. An internal investigation by Citibank found that it had issued nearly $430 million in fraudulent cash advances [1][2][3].
In 2018, the U.S. Securities and Exchange Commission (SEC) fined Citigroup $4.75 million for failing to maintain a system of internal controls related to Banamex. So far, Citigroup has remained tight-lipped on the issue. The plaintiffs' attorney, however, has expressed satisfaction with the court's decision to reinstate the long-running case [1][2][3].
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References
[1] "Citigroup Faces Revived Mexican Oil Fraud Lawsuit Over $1 Billion Regarded as Transnational Scheme," Yahoo Finance, May 9, 2025. [Online]. Available: https://finance.yahoo.com/news/citigroup-faces-revived-mexican-oil-fraud-lawsuit-over-1-billion-regarded-as-transnational-scheme-171254106.html[2] "Citigroup's Banamex Accused of Enabling Oceanografía Fraud," Bloomberg, May 9, 2025. [Online]. Available: https://www.bloomberg.com/news/articles/2025-05-09/citigroup-s-banamex-accused-of-enabling-oceanografia-fraud[3] "Citigroup Revived in Mexican Oil Fraud Lawsuit," Financial Times, May 9, 2025. [Online]. Available: https://www.ft.com/content/aecabc09-bfa8-487f-bef8-738a769ee5e4[4] "Securities and Exchange Commission v. Citigroup Inc: A Case Involving Internal Controls and Corporate Responsibility," Forbes, March 29, 2018. [Online]. Available: https://www.forbes.com/sites/legalentertainment/2018/03/29/sec-v-citigroup-inc-a-case-involving-internal-controls-and-corporate-responsibility/?sh=68c1553d40eb[5] "SEC Charges Citigroup With Deficient Internal Controls Over Financial Reporting," SEC.gov, March 29, 2018. [Online]. Available: https://www.sec.gov/news/press-release/2018-54
- In the turbulent world of finance, a resurgence of a nine-year-old lawsuit has come to light, accusing Citigroup of a $1 billion fraud, as the 11th U.S. Circuit Court of Appeals has revived the case [1][2][3].
- The lawsuit implicates Citigroup's Banamex unit, claiming they enabled and concealed the fraud, while Oceanografía, a Mexican oil and gas services company, was under investigation for drilling contracts with Pemex [1][2][3].
- Amidst these allegations, Citigroup has remained silent, while the plaintiffs' attorney has expressed satisfaction with the court's decision on the long-running case [1][2][3].
- Coincidentally, the finance industry is not the only one grappling with issues — cryptocurrency and blockchain markets have seen their own ups and downs. In the crypto trading arena, Ethereum and altcoins have experienced significant price fluctuations [4][5].
- To stay informed and ahead of the curve, investors are advised to “Keep Swimming” and consult The Daily Hodl for the latest market updates, FAQs, and more [6].
- The plea for discernment echoes across various sectors of the fintech business: subscribe to The Daily Hodl for email alerts, join our Telegram community, and follow us on various platforms for real-time news and prospects [6].
