Rogue Sales Assistant Costs Citigroup $500,000 In FINRA Fines

Wednesday, August 10, 2011 07:27
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Rogue Sales Assistant Costs Citigroup $500,000 In FINRA Fines

Tags: FINRA

 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.

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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.

 

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