Welcome to the MacNN Forums.

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

You are here: MacNN Forums > News > Tech News > Citigroup fined $30 million for 2012 leak of iPhone manufacturing info

Citigroup fined $30 million for 2012 leak of iPhone manufacturing info
Thread Tools
MacNN Staff
Join Date: Jul 2012
Status: Offline
Reply With Quote
Oct 3, 2013, 07:49 PM
 
Citigroup has agreed to a settlement with Apple, where it will pay the Cupertino manufacturer a $30 million fine after Citigroup analyst Kevin Chang improperly distributed confidential research about an Apple supplier. The unpublished research detailed Hon Hai Precision Industry's iPhone 4, 4S and 5 component orders to Citadel, GLG Partners, SAC, and T. Rowe Price. Citigroup's research included incorrect information about iPhone orders in the first quarter of 2013, which induced SAC, Citadel, and T. Rowe Price to sell a large quantity of Apple stock, depressing the price.

William Galvin, Massachusetts' Secretary of the Commonwealth, said that the fine was 15 times the state's previous penalty against Citi in a case about the Facebook IPO and improper insider information, because Citi's own supervision of analysts -- which it promised it would do as part of the last fine -- has proven to be inadequate. "The Citi analyst should not have been that accessible to the clients, he should have been better protected by the compliance team," Galvin added.

"The emails between Kevin Chang and the hedge funds reveal this cozy culture which illustrates again that there are two types of customers; big ones, and retail customers who often don't receive this information," Galvin said in an interview with Reuters. No criminal charges have been filed. Chang is no longer with Citigroup. Galvin has offered assistance on this case to the FTC and other regulatory agencies.


Citigroup Consent Order

( Last edited by NewsPoster; Oct 4, 2013 at 08:12 AM. )
     
Senior User
Join Date: Jan 2007
Location: SF
Status: Offline
Reply With Quote
Oct 4, 2013, 01:30 PM
 
They probably made 40+ million in the transactions, so Ka-Ching! 10+ million. That's the way these mega-corp fines seem to work out. It never seems to be enough to stop them from doing bad things. It's profitable enough activity that they'd rather just pay the fines.
     
   
Thread Tools
Forum Links
Forum Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Top
Privacy Policy
All times are GMT -4. The time now is 01:08 PM.
All contents of these forums © 1995-2015 MacNN. All rights reserved.
Branding + Design: www.gesamtbild.com
vBulletin v.3.8.8 © 2000-2015, Jelsoft Enterprises Ltd., Content Relevant URLs by vBSEO 3.3.2