The SEC subpoenaed several former in-house brokers as part of an investigation of Citigroup (C) debt funds.

The funds in question borrowed heavily and invested in mortgage bonds and municipal bonds, The Wall Street Journal said without naming its sources. The funds' value slumped by as much as 77% during the financial crisis, leading Citigroup to offer share buybacks that would reduce investor loss to about 61%.

Three brokers, who at the time worked for a Citigroup unit, spoke to the SEC about alleged mismanagement and failure to disclose the funds' risk. The brokers resigned in 2008 in a dispute over how the funds were management.

If the SEC rules that Citigroup misled investors, the brokers stand to claim as much as 30% of certain penalties, under provisions of the Dodd-Frank financial regulatory reform.

The brokers' testimony is confidential. The SEC declined to comment.

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Shitiband will never get the punishment it deserves!

November 12 2010 at 7:59 PM Report abuse rate up rate down Reply

Chairman Mary L. Schapiro 08/10/20 Securities and Exchange Commission Washington, DC Dear Chairman Schapiro: I request your confirmation that the information I have provided the Securities and Exchange Commission concerning the fraudulent financial statements and Ponzi by MONY / AXA / PricewaterhouseCoopers / Goldman Sachs and others will be covered by the whistleblower provisions in the recently passed Dodd-Frank financial reform act. I also would like to report additional information I have place on the Internet at that can help the current investigation. Perhaps the Dodd-Frank will allow the SEC to obtain the financial records that Treasury IG Russell George chose to hide. You may contact me at or 817-946-8097 with any questions or document verification. I look forward to your confirmation. Respectfully, R. Dale Abshire 2606 Twelve Oaks Lane Colleyville, TX 76034

November 08 2010 at 2:12 PM Report abuse rate up rate down Reply

Hey, what ever happens from now on you can thank these people who voted the thieves back into office.

November 08 2010 at 1:27 PM Report abuse +1 rate up rate down Reply

I see the cover up continues, their testimony is held in secrete, gee wonder why? I'd hate to see anyone at the major bank/wall street houses take a hit. If the Feds were serious they would have demanded that all the tarp receip. board of directors be 100% replaced before theye got one penny from the people.

November 08 2010 at 12:29 PM Report abuse +1 rate up rate down Reply

Well, the Guards put the inmates (selfish, thieving,republicans) back in power so why are they bothering.

November 08 2010 at 11:26 AM Report abuse rate up rate down Reply