Citi Fined $30 Million By Massachusetts Over Unreleased Apple Data Sharing

by

NewImageCitigroup has been fined $30 million by the Commonwealth of Massachusetts in a settlement after a Citi analyst sent confidential research information to major clients without sharing it with the public, reports Reuters.

The research, which included negative order forecasts for the iPhone, was shared with major Citi clients including SAC, T. Rowe Price, Citadel, and GLG partners -- but not with Citi's retail investors, putting them at a competitive disadvantage.

"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 dont' receive this information," [Massachusetts Secretary of State William] Galvin said in a telephone interview.

The complaint cites an email from an unidentified SAC employee who asked a contact at Citi "can u send me everything u have on the entire iphone 4/4s/5 supply chain?.

Citi employees responded immediately by asking their colleagues "can you please send directly to (employee for SAC Capital) ... He needs it asap - works directly for (SAC Capital).'

Citi was previously fined $2 million by Massachusetts for improper disclosures related to Facebook's IPO last year. The analyst in question, Kevin Chang, was terminated by Citi last month.

Top Rated Comments

(View all)
Avatar
89 months ago
It's illegal, immoral, and unethical, and it will keep happening until the major players do major jail time. When a company is public any information that gets released should be released to everyone at the same time. But just like the Facebook IPO, companies play favorites to reward the people they like.
Score: 4 Votes (Like | Disagree)
Avatar
89 months ago
It's insider trading, which is illegal in the USA. Was this Kevin Chang guy not arrested? The only punishment he got was being fired from his job at Citigroup?
Score: 4 Votes (Like | Disagree)
Avatar
89 months ago

The analyst in question, Kevin Chang, was terminated by Citi last month.


seems a bit harsh!
did they send in the T-1000s?
Score: 3 Votes (Like | Disagree)
Avatar
89 months ago
$30 million is peanuts to Citi. If the government was serious about stopping this, they would've fined Citi an amount that would've hurt. :rolleyes:
Score: 1 Votes (Like | Disagree)
Avatar
89 months ago
Too big to fail = Too big to jail?

----------

Massachusetts is a welfare state, an 'entitlement' state. Everyone knows this to be true. But when the money isn't coming in through normal channels (income taxes) at the rate and volume you need to 'feed the beast,' then you go knocking on other doors.

Hello Citi

(with apologies to 'Hello Kitty.')

Absurd. Are you saying that Citi conducting illegal activity is ok?
Score: 1 Votes (Like | Disagree)
Avatar
89 months ago

dont'

*twitches involuntarily*
Score: 1 Votes (Like | Disagree)

Top Stories

Apple Announces New 27-Inch iMac With 10th-Gen Processors, Up to 128GB RAM, 1080p Webcam, True Tone, and More

Tuesday August 4, 2020 8:07 am PDT by
Apple today announced a new 27-inch iMac with faster 10th-generation Intel Core processor options, next-generation AMD graphics, up to 128GB of RAM, a higher-resolution 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, a T2 chip, higher fidelity speakers, studio-quality microphones, and more. A breakdown of the new 27-inch iMac's features and specs:10th...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Everything New in iOS 14 Beta 4: Apple TV Widget, Search Improvements, Exposure Notification API and More

Tuesday August 4, 2020 11:14 am PDT by
Apple today released the fourth developer betas of iOS and iPadOS 14 for testing purposes, tweaking and refining some of the features and design changes included in the update. Changes get smaller and less notable as the beta testing period goes on, but there are still some noteworthy new features in the fourth beta, which we've highlighted below. - Apple TV widget - There's a new Apple TV...

Apple May Launch This Year's 'iPhone 12' Lineup in Two Stages, With 6.1-inch Models Debuting First

Monday August 3, 2020 3:14 am PDT by
Apple last week confirmed that its "‌iPhone‌ 12" launch will be delayed this year due to the ongoing global health crisis and restrictions on travel. Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later," suggesting a release sometime in October. We're expecting a total of four OLED iPhones in 5.4, 6.1, and...

Apple Explains Why You Might See 'Not Charging' When a Mac is Plugged In

Monday August 3, 2020 1:42 pm PDT by
If you have a Mac and have seen a "Not Charging" warning when plugging it in to power, Apple last week released a support document that explains why. Macs running macOS 10.15.5 or later have a Battery Health Management feature to preserve the life of the battery, and occasionally, the Battery Health Management option will cause the Mac to pause its charging for calibration purposes.Depending ...

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

Google's $349 Pixel 4a vs. Apple's $399 iPhone SE

Wednesday August 5, 2020 1:45 pm PDT by
Google this week launched its newest smartphone, the $349 Pixel 4a, a low-cost device that's designed to compete with other affordable devices like Apple's iPhone SE. We picked up one of the new Pixel 4a smartphones and thought we'd check it out to see how it measures up to the iPhone SE, given that the two devices have such similar price points. Subscribe to the MacRumors YouTube channel ...

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Samsung Launches Galaxy Note 20, Galaxy Z Fold 2, and Galaxy Buds to Compete With Apple's iPhones and AirPods Pro

Wednesday August 5, 2020 10:07 am PDT by
Samsung today held a virtual Galaxy Unpacked event where it unveiled its next-generation smartphones that will compete with Apple's 2020 iPhone lineup, set to come out in the fall. Samsung announced the launch of the Galaxy Note 20 and the Galaxy Note 20 Ultra, the two newest devices in the Note lineup, and, more notably, the Galaxy Z Fold 2, Samsung's latest foldable smartphone. The...

Alleged 'iPhone 12' Images Depict Circular Array of Magnets in Chassis

Wednesday August 5, 2020 4:39 am PDT by
New images shared on Weibo appear to show a circular array of magnets housed inside an "iPhone 12" chassis. The unverified images depict 36 individual magnets in a circular arrangement, suggesting they could be related to mounting or charging. EverythingApplePro, who shared the Weibo-originating images on Twitter, also posted an image of an alleged iPhone 12 case with a similar array of...