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Citi destroyed tapes, says NY investigator
By Francesco Guerrera and Joanna Chung in New York
Friday Aug 1 2008 18:40
Citigroup (NYSE:C) was on Friday accused of destroying records subpoeaned by Andrew Cuomo, the New York attorney-general, who intends to sue the investment bank for its role in the collapsed auction rate securities market.
Citi "repeatedly and persistently committed fraud" by misrepresenting auction rate securities as safe and cash-equivalent investments, said David Markowitz, chief of the office's Investor Protection Bureau, in a letter sent to the bank on Friday.
After receiving a subpoena in mid-April for records under New York's powerful Martin Act, Citi had "destroyed" recordings of related telephone conversations and failed to notify authorities - even though it learnt in mid-June that tapes had been destroyed, the letter claimed.
$18.95 (08/01/08)
