Citibank sued for inventor losses

According to a Gulf News report, Citibank has been accused of self-dealing, defrauding investors, and attempting to initiate a global cover-up of investor losses. The bank was sued by investor Dr. Sami Abbas Hussein Ali before the Abu Dhabi Commercial Court of First Instance

According to the lawsuit (Lawsuit No. 2901/2014) filed on Sunday, Citibank International PLC, Citi Private Bank , and Citi Private Bank — Abu Dhabi hid losses from investors in the CReAM ( Citi Real Estate Asset Management) Fund, some of whom unknowingly lost their entire investment, for more than three years before sending a one-page letter that stated that previous quarterly reports showing value in the investment had been inaccurate as a result of a “ Citi Private Bank operational error.”

The suit accused Citi of purchasing two shopping centers in the United Kingdom at questionable values, one of which appears to have been owned by the CReAM Fund’s own manager, without disclosing the “insider” nature of the transaction to investors

A Citibank spokesperson said, “At present Citi is not aware of the legal action referred to in the press release. Citi does not consider there is any merit in the allegations contained in the release and will vigorously defend any proceedings brought against it.”