Citigroup and BellSouth Retirees -- No Admission of Accountability--Mistakes were Made

Here we go again. How many times will I say that in regard to people being shits? This time it’s Citigroup brokers and bank managers who gave BellSouth retiree misleading information about how much money their investments would earn if they invest in Citigroup accounts. Many employees gave up secure and well-paying jobs on the basis of promised made about rates of return. They invested their life savings in Citigroup accounts.

Instead, their nest eggs disappeared and their dreams of retirement turned into nightmares according to a spokesman. The 200 employees lost a total of more than $12 million.

Citigroup employees gave seminars to BellSouth employees between 1994 and 2002 and told them that they could expect returns of at least 12% per year but typically much more if the retirees opened accounts with Citigroup.

They neglected to tell the retirees that fees would be at least 2% and that their investments would have to earn 14% to make the promised 12%. They did not inform them of the risks.

Citigroup said only a small group of employees were involved and that their actions do not reflect upon the high integrity of other employees and the investment firm itself. The employees were suspended and fined but not fired.

Citigroup paid $3 million in fines and more than $12 million in restitution. So, the retirees got their money back but they earned no interest, nothing in the years they had given their funds over to the firm.

Citigroup neither admitted or denied the allegations of misleading information. Apparently, "Mistakes were made." Right.

The agency that regulates such matters is NASD (the National Association of Securities Dealers).