CGMI disseminated its research ratings to customers on account statements, email alerts and an online portal.
FINRA found that from February 2011 through December 2015, CGMI displayed to its brokers, retail customers and supervisors inaccurate research ratings for more than 1,800 equity securities --more than 38 percent of those covered by the firm.
As a result of the errors, CGMI brokers solicited thousands of transactions inconsistent with the firm's actual ratings and negligently made inaccurate statements to customers about those ratings.
Customers were overcharged when CGMI failed to rebate certain customers' accounts after periods of inactivity when fees should not have been charged, but were.
The investigation of CGMI in New York stretches back to 2012; that's when Schneiderman began investigating CGMI after a complaint from a Westchester resident.
The investigation has proceeded with CGMI's cooperation, and will result in the repayment of more than $20 million in principal and interest for fees CGMI overcharged its customers.
(CGMI) and Citigroup Alternative Investments LLC (CAI) agreed to "bear all costs" of distributing the $180 million in settlement funds to 4,000 harmed investors.
The funds, both highly leveraged, were sold exclusively to advisory clients of Citigroup Private Bank or Smith Barney by financial advisors associated with CGMI. Both funds were managed by CAI.
KB said that CGMI
has informed the homebuilder that the it has received commitments from several financial institutions with respect to this credit facility, subject to execution of satisfactory documentation.