'We intend to hold the individuals who conducted these activities accountable'.
Citigroup said it discovered that the private-security unit in its Mexican bank engaged in illegal and unauthorized activities that included working for people outside of the bank and using intercepted phone calls.
Bloomberg News reports that the fraud at Banamex, which began around 2000 and continued through last year, also included misreporting of gasoline expenses to inflate reimbursements from the bank, and shell companies were used to launder proceeds, said a person with knowledge of the matter, who asked not to be identified because the detailed results of a Citigroup internal investigation haven’t been disclosed. The fraud amounted to about $15 million, New York-based Citigroup said in a statement.
'While the fraud is not financially material, the conduct of the individuals involved is appalling,' Citigroup Chief Executive Officer Michael Corbat said in the statement. 'Now that this investigation is complete, we intend to hold the individuals who conducted these activities accountable.'
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