Citi's Pandit Named in Indian Fraud Case

NEW YORK ( TheStreet) -- Citigroup's ( C) CEO Vikram Pandit and several other senior level executives were named by regulators in India in relation to a $67 million fraud case at one local branch.
Pandit Vikram
Citigroup CEO Vikram Pandit

Pandit, along with CFO John Gerspach, COO Doug Peterson as well as Citibank chairman William Rhodes and others officials based in India were named in the report, according to the Times of India. The article described the Indian claim as a "first information report," although it did not elaborate if it was part of an official charge or if the executives had any direct knowledge of the allegations.

The link was first cited by The Wall Street Journal.

Shivraj Puri, a relationship manager at Citi's Gurgaon branch, was arrested last week for allegedly forging company statements and creating multiple bank accounts to allegedly swindle money. The manager was arrested after the bank found some suspicious transactions at its Gurgaon branch last week.

On Monday, an executive from Hero Group was arrested by Indian authorities in connection with the fraud case.

"As this individual well knows, Citi identified the fraud and immediately reported the matter to the regulators and law enforcement agencies. His claims against senior executives are completely without basis and we intend to contest them vigorously" a Citi spokesperson said in an emailed statement. "It was on Citi complaint that the Gurgaon police lodged an FIR and are currently investigating the matter. Citi will continue to work with the authorities on this investigation."

Citi shares were falling 1.1% to $4.84. Roughly 245 million shares had changed hands so far in the trading day.

-- Written by Laurie Kulikowski in New York.

To contact the writer of this article, click here: Laurie Kulikowski.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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