CGMI to return $22.5 million to consumers after fee overcharge allegations in New York

By Mark Iandolo | Jan 24, 2017

NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Jan. 12 that Citigroup Global Markets Inc. (CGMI), a subsidiary of Citigroup, will return more than $22.5 million in fees to more than 47,000 consumers after a four-year long case. The company admitted to the findings of Schneiderman’s office.


“Our investigation put $22.5 million, rightfully, back in the hands of customers in New York and across the country,” Schneiderman said. “We appreciate Citi’s cooperation with our investigation and its commitment to ensuring investors are paid back what they are owed – which sets an example for other financial institutions.”


CGMI has been going through with the restitution since October 2014 and has fully cooperated with Schneiderman’s office. The company also started to revise its policies and procedures to address the issues. For the next three years, CGMI will need to report fee overcharge issues to Schneiderman’s office. The company will also pay a $1 million penalty to the state of New York.


Katherine C. Milgram, chief of the Attorney General’s Investor Protection Bureau, and assistant attorney general Dhawal Sharma, handled the case for the state. Gary Brown, assistant attorney general-in-charge of the Westchester Regional Office, also contributed.

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