Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Citigroup (NYSE:C) stock dropped to a session low of 1.5% before paring losses to 0.5% after Bloomberg reported the bank oversaw more than $1 billion worth of transactions for a Delaware-based trust allegedly linked to a sanctioned Russian oligarch.
According to the report, Citigroup administered Heritage Trust, which was established in July 2017 with funds originating from Russian Senator Suleiman Kerimov. After Kerimov was sanctioned by the U.S. Treasury Department in April 2018, the bank reportedly continued to oversee transactions exceeding $1 billion, including investments in U.S. companies such as Uber Technologies (NYSE:UBER) and Snap Inc (NYSE:SNAP).
The documents reviewed by Bloomberg indicate that Citigroup facilitated a $57 million investment in Uber and a $141.5 million stake in Snap through the trust. The bank also reportedly oversaw an investment in SpaceX while Kerimov was under sanctions.
Bloomberg previously reported that the Justice Department is investigating Citigroup’s handling of Kerimov’s money. The new documents reveal that the bank engaged with lawyers and Treasury officials in efforts to continue doing business with Heritage Trust lawfully after Kerimov’s designation as a sanctioned individual.
The U.S. Treasury Department eventually froze the trust’s assets four years after Kerimov was sanctioned, claiming he had maintained a concealed interest in the trust. Treasury regulations require companies to freeze assets of sanctioned individuals and report any frozen interests within 10 business days.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.