Citigroup Engulfed in Revived $1 Billion Fraud Lawsuit

Published 1 days agoC

Citigroup Engulfed in Revived $1 Billion Fraud Lawsuit

Citigroup is back in the spotlight as the 11th U.S. Circuit Court of Appeals in Miami has revived a significant lawsuit against the financial institution. On May 8, 2025, the court ruled that 30 plaintiffs, including vendors and creditors, have adequately alleged Citigroup's role in aiding fraudulent activities of the now-bankrupt Mexican oil services company, Oceanografia. The decision overturns a previous dismissal from 2023, reigniting the multi-billion dollar legal battle.

The plaintiffs claim that despite Oceanografia's soaring debt and the allegedly forged signatures from Pemex, Mexico's state-owned oil giant, Citigroup advanced $3.3 billion to the troubled company between 2008 and 2014. These allegations are not new. In fact, Reuters reported that in 2018, the U.S. Securities and Exchange Commission had fined Citigroup $4.75 million for failing to maintain proper internal controls over these questionable loans.

Following the fraud discovery, which included nearly $430 million in phony cash advances, Citigroup took decisive internal measures, firing 12 employees. The ongoing case, Otto Candies LLC et al v. Citigroup Inc, will now proceed under U.S. District Judge Darrin Gayles, continuing to delve into Citigroup's alleged involvement in this financial debacle.

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