Feb. 28
NEW YORK (MarketWatch) -- Citigroup Inc.C -0.99% has adjusted its 2013 results, saying it was defrauded by Oceanografia, an oil-services company in Mexico. The bank said Friday that its Mexican subsidiary, known as Banamex, was lending money to the company. But according to Citigroup, Oceanografia was lying about the amount of money it was owed by Mexico's state-owned oil company, known as Pemex. The bank got suspicious on Feb. 11, when it learned that Oceanografia had been suspended from receiving new contracts from the Mexican government. Pemex soon confirmed that Oceanografia was lying about the amount of money owed to it by Pemex, according to Citigroup's filing. The fraud will hurt Citigroup's 2013 net income by $235 million after tax, the bank said, cutting results to $13.7 billion from the $13.9 billion that the bank reported in January. Citigroup also said it is working with Pemex and Mexico's attorney general to pursue "criminal actions." Citigroup CEO Mike Corbat said in a statement there would be "accountability for those who perpetrated this despicable crime and any employee who enabled it."
Source: http://www.marketwatch.com/story/citigroup-results-hit-by-mexico-oil-services-fraud-2014-02-28?
NEW YORK (MarketWatch) -- Citigroup Inc.C -0.99% has adjusted its 2013 results, saying it was defrauded by Oceanografia, an oil-services company in Mexico. The bank said Friday that its Mexican subsidiary, known as Banamex, was lending money to the company. But according to Citigroup, Oceanografia was lying about the amount of money it was owed by Mexico's state-owned oil company, known as Pemex. The bank got suspicious on Feb. 11, when it learned that Oceanografia had been suspended from receiving new contracts from the Mexican government. Pemex soon confirmed that Oceanografia was lying about the amount of money owed to it by Pemex, according to Citigroup's filing. The fraud will hurt Citigroup's 2013 net income by $235 million after tax, the bank said, cutting results to $13.7 billion from the $13.9 billion that the bank reported in January. Citigroup also said it is working with Pemex and Mexico's attorney general to pursue "criminal actions." Citigroup CEO Mike Corbat said in a statement there would be "accountability for those who perpetrated this despicable crime and any employee who enabled it."
Source: http://www.marketwatch.com/story/citigroup-results-hit-by-mexico-oil-services-fraud-2014-02-28?
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