Pandit named In Citigroup fraud case: India police file FIR against CEO Vikram Pandit, CFO Gerspach
These are not formal fraud charges, yet, though it is more than a little interesting that Pandit and other U.S. executives were named in the suit.
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Charges Filed Against Vikram Pandit
Gurgaon police on Tuesday registered a first information report (FIR) against Indian-born global chief executive of Citigroup Vikram Pandit and ten others in the $80 million Citibank fraud case in the north Indian state of Haryana.
The police also registered an FIR against Citibank chairman William R Rhodes along with other senior officials based in India based on a complaint filed by Sanjiv Agarwal, a high networth individual.
Last week, Citibank uncovered a fraud at its Gurgaon branch involving diversion of its depositors’ money into the stock market.
Gurgaon police commissioner S S Deswal said the police got the complaint and registered an FIR immediately.
Agarwal, a resident of Gurgaon, has in his complaint alleged criminal breach of trust, falsification of accounts, cheating and criminal conspiracy by the bank officials.
"All persons named (in FIR)... in collusion and conspiracy with each other and other known or unkonwn persons, (and) have misappropriated large sums of money to the tune of 300 million rupees," Agarwal said in his complaint.
Citibank’s senior officials chief financial officer John Gerspach and chief operating officer Doughlas Peterson, both based in New York are also named in the FIR.
A case has been registered under sections 409, 477A, 420 and 120B of the Indian Penal Code.
The others who figure in the FIR are Amit Zarpuri, Ashwini Chaddha, Amrita Farmahan, Rahul Soota, N Rajshekaran, Pramit Jhaveri and Shiv Raj Puri, the main accused in the fraud case.
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Video: Maria Bartiromo with Citigroup CEO Vikram Pandit -- January 29, 2010
Pandit doesn't mention his own hedge fund was sold to Citigroup back in 2006 for $800 million and 12 months later the fund was shuttered for a total loss.
In other words, taxpayers essentially paid for Citi's ridiculous purchase, and Pandit took home almost $200 million (his stake) at our expense.
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And here are those links...
Rubin and Citigroup were eyeing Old Lane as an acquisition—not for high-yield returns, but for Pandit, a potential candidate to one day run Citi. In April 2007, Pandit sold Old Lane to Citi for $800 million, a price tag that boggled the minds of Wall Street observers. Pandit personally reaped a huge bounty, what amounted to $165 million in cash. With his windfall, he bought a ten-room, $17.9 million co-op apartment on Central Park West, the former home of the late actor Tony Randall. Rubin made little pretense about why Citi had spent so much money: He publicly called Pandit “a genius.”
http://nymag.com/news/businessfinance/55035/index3.html
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In another blow to its already battered reputation, The WSJ says Citigroup plans to close Old Lane, a hedge fund it paid $800 million for less than a year ago.
Adding insult to injury, Old Lane was co-founded by Vikram Pandit, Citi's current CEO. Pandit personally netted $165 million from the transaction, which paved the way for his rise to the top of Citigroup after former CEO Chuck Prince was ousted.
Jan 4, 2011 at 12:59 PM
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source for story...
http://finance.yahoo.com/tech-ticker/article/27136/Citi-Shutting-CEO-Pandit's-Hedge-Fund-Says-WSJ-More-Blowups-Likely?tickers=C,LEH,GS,JPM,UBS,BSC
The Most Powerless Powerful Man on Wall Street
How Citi CEO Vikram Pandit finally reached the top— just in time to see the financial system, Citigroup, and all his dreams come crashing down.
ED enters Citibank probe scene
http://www.hindustantimes.com/business-news/businessbankinginsurance/ED-enters-Citibank-probe-scene-/Article1-648395.aspx