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

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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

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92 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)
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92 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)
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92 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
92 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
92 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
92 months ago

dont'

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

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