Those wondering why backoffice personnel need to be regulated should look no farther afield than Citigroup, where a rogue sales assistant just cost the firm $500,000 and plenty of goodwill.
Citi sales assistant Tamara Moon wasn't making any investment recommendations but had access to account information.
FINRA says she used her knowledge of the firm's procedures to funnel close to $750,000 from 22 client accounts over the course of eight years.
Citi systems repeatedly flagged her transactions -- including opening accounts for dead people -- but she explained them away and the firm reportedly never followed up.
That lax supervision has now added up to a $500,000 fine for Citi.
FINRA seems to have taken its time on this one. Moon herself was barred from the industry all the way back in August 2009 -- barely a year before her eight-year run of account tampering ended.