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Citigroup discloses new Mexico unit fraud

Tuesday, October 14, 2014

Citigroup said an independent investigation found a $15 million fraud at a Mexican unit that provided personal security services, adding that it has contacted law enforcement and regulators and disbanded the division.

“The investigation uncovered illegal conduct, including fraud in the range of $15 million, the unauthorized providing of security services to outside parties, and the use of intercepted telecommunications,” Citigroup said.

The probe into the personal security division followed Citigroup’s disclosure in February of a loss related to an alleged fraud involving loans to oil-services company Oceanografia.

Source: Businessweek