Citigroup was fined 1.5 million in a Funeral Preneed Trust Case. The branch of Citigroup Fined was Citigroup Global Markets. The case involves the jailed Clayton Smart, and the Citigroup Broker Mark Singer, Forest Hill Cemetery in Memphis and Michigan.
Penalties of $1.5 million have been levied against Citigroup for supervisory violations related to its handling of millions of dollars in trust funds belonging to Forest Hill cemeteries in Memphis and Michigan.
The penalties — including a $750,000 fine and forfeiture of $750,000 in commissions — were imposed Wednesday by the Financial Industry Regulatory Authority against Citigroup Global Markets Inc., whose broker is accused of theft and money laundering here.
The commissions will be returned to the cemetery trusts as partial restitution.
“Firms have a duty to protect customer funds by taking prompt and meaningful action when they encounter indications of possible fraud or misappropriation,” said FINRA official James S. Shorris in Washington. “That duty is particularly critical when firms handle trust funds where the beneficiaries may be unsophisticated investors who are unaware of how the funds are being handled.”
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