The accusations read like a pulp thriller: Citigroup employees in Mexico are suspected of pocketing millions of dollars in kickbacks from vendors. And bodyguards for bank executives bought audio recordings of personal phone calls and created shell companies to disguise their fraud...
The security unit’s primary purpose was to protect the Banamex leadership, but at some point, the unit started operating beyond its approved duties, according to the person briefed on the matter who was not authorized to speak publicly because of the criminal investigation. The security unit was also providing protection and security consulting services for people outside the bank, sometimes as a courtesy and at other times for money, the internal investigation found. The conduct spanned more than a decade, the investigation found, extending into last year...
Citigroup’s outside lawyers have turned over information to law enforcement officials in Mexico and the United States, but there are many things the bank doesn’t know about the rogue security unit. For example, the security team had purchased audio surveillance files from “third parties” that included cellphone and landline conversations of dozens of people — some of a highly personal nature, the person said. The Banamex unit then transcribed many of these files. It was unclear why the security team was amassing records of the personal conversations. The bank’s investigators are still working to determine why the security unit gathered the conversations, involving dozens of people, many of whom had nothing to do with the bank. (more)
