Citi Fair Fund
Frequently Asked Questions
1. What are the details of the SEC’s settlement with Citigroup Global Markets Inc.?
The SEC filed a complaint in the U.S. District Court for the Southern District of New York (the “Court”) against Citigroup Global Markets Inc. (“CGM”) alleging that it violated the antifraud provisions of the Securities Act of 1933 (Sections 17(a) (2) and (3)), by, among other things, making misrepresentations regarding the selection of assets for the collateralized debt obligation (“CDO”) called Class V Funding III and failing to disclose its financial interest in the transaction. CGM consented to the entry of a Final Judgment that required it to pay $285 million.
The Citigroup Global Markets Inc. Fair Fund (the “Citi Fair Fund”) was established May 23, 2017 by Court Order by the United States Securities and Exchange Commission (“SEC”) to distribute the disgorgement, prejudgment interest and a civil penalties paid by CGM. The SEC brought a related administrative proceeding against Credit Suisse Alternative Capital, Inc. (“CSAC”) and a CSAC affiliate which resulted in the entry of an Order requiring CSAC and an affiliate to pay $2.55 million. These monies have been added to the Citi Fair Fund to be distributed to harmed investors.
The Citi Fair Fund will be distributed, pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act to investors in the Class V Funding III CDO that were harmed by misrepresentations and omissions of material facts made in connection with the marketing of the transaction.
2. Who is potentially eligible to participate in the distribution of the Fair Fund?
3. What securities must have I purchased to be eligible to participate in the recovery?
Investments in the following securities are potentially eligible for a recovery:
Making a Submission
4. How do I apply to participate in the Citi Fair Fund?
In order to be considered for a recovery from the Citi Fair Fund, you must submit documentation and information before the submission deadline. The submission may be provided electronically at the following e-mail address: firstname.lastname@example.org; or mailed to the following address:
Citi Fair Fund
+1 845 2433 477
You can also ask the Distribution Agent to mail you a notice by calling +1 845 2433 477, sending an email request to email@example.com or by writing to the address included above.
Please include as much of the information listed in the Fair Fund Notice as possible as part of your submission. An incomplete submission may result in delay in processing your submission.
5. What is the deadline for making a submission?
The deadline for making a submission is February 28, 2018.
6. What should be included in my submission?
It would be helpful if your submission included the following information:
1. A detailed statement with supporting documentation, where relevant, pertaining to:
A. Background information about the investor entity, including information such as: the entity type (i.e., whether it is a bank, pension plan, insurance company, hedge fund, or other type of financial institution), the domicile of the entity, and the nature of the entity’s business;
B. An explanation of the investment in the Funding generally, including factors such as: when the initial investment was made and the tranche, the total amount of the investment, how long the investor held the investment, whether the Funding assets purchased were incorporated into another CDO, and the investor’s strategy in connection with the Funding investments; and
C. The investor’s role in the structured finance markets generally (e.g., investor’s percentage of total revenues earned from structured finance activities, investor’s activity in the market, whether the investor or any of its subsidiaries or affiliates acted as a collateral manager, issuer or arranger of structure finance products).
2. Disclosure of any premium payments received by the investor (including any parent entity, subsidiary or affiliate of the investor), and the dates and the amounts of such payments;
3. Disclosure of any lawsuits or other proceedings the investor pursued to recover losses from its investments in the Funding and any payments received by the investor (including any parent entity, subsidiary or affiliate of the investor) in connection with such lawsuits or proceedings; and
4. Disclosure of any other payments received by the investor (including any parent entity, subsidiary or affiliate of the investor) that constitute a recovery for the investor’s losses from its investments in the Funding (e.g., insurance recoveries).
Your submission is made under statutory penalties of perjury under the laws of the United States of America.
7. Do I need to submit supporting documents with my submission?
Yes. You must submit information and documentation sufficient to enable a calculation of loss, which includes documentation of the original investment(s), premium payments received, associated hedges, or any recoveries received.
Please be sure the documentation confirms the details provided in your submission and includes adequate identifying information to link the transactions detailed in the documentation to the investor (i.e., entity name and/or account number must appear on all documentation submitted).
Handwritten modifications to the documentation or self-generated schedules or statements will not be accepted. Please do not send the originals of your supporting documentation; be sure to provide copies.
If you do not submit supporting documentation to verify the transactions, we will be unable to determine whether you may be eligible for a recovery from the Citi Fair Fund. Notices detailing any issues with your submission may be mailed at a later date and you may have an opportunity to submit additional supporting documentation at that time.
8. What if I cannot provide all the supporting documents with my submission?
9. Will the information in my submission be kept confidential?
After Your Submission
10. Will I be notified whether my submission is accepted, rejected or deficient?
11. How much will I be paid if I am eligible?
Until all submissions have been fully processed, it is not possible to determine the amount of any individual payment because the amount will depend on a variety of factors, such as, the number of eligible investors and/or the total dollar amount of eligible losses.
Getting More Information
12. I still have some questions. Who can I contact?
Need to talk to someone?
We’re here to help. US based support, Monday thru Friday, 8:30am to 5pm EST.