January 4, 2011 / 11:10 PM / 9 years ago

Indian police register case against Citigroup CEO Pandit - WSJ

Citigroup Inc. Chief Executive Officer Vikram S. Pandit speaks during the lunchtime address at the Global Financial Forum in New York, April 26, 2010. REUTERS/Mike Segar/Files

NEW YORK (Reuters) - Police in India registered a case against Citigroup Inc Chief Executive Vikram Pandit and other top bank officials in connection with an employee’s alleged $67.2 million fraud, the Wall Street Journal reported on Tuesday.

Citigroup said last week it was investigating a set of suspicious transactions based on what it said were documents forged by an employee at a branch in India. A person familiar with the matter told Reuters the transactions may involve between 3 billion and 4 billion rupees ($67 million to $89 million).

Citigroup customer Sanjeev Agarwal, who was affected by the alleged fraud, brought a complaint to the police, who confirmed to the Journal that they have registered a fraud case against the bank.

The Journal said that under Indian law, the police are required to respond to any complaint about a potential crime by registering a case, or a “first information report.” That report marks the beginning of an investigation.

Agarwal’s complaint named Pandit and other top Citigroup executives, including former Senior Vice Chairman William Rhodes, Chief Operating Officer Douglas Peterson and Chief Financial Officer John Gerspach, according to the Journal.

Citigroup spokeswoman Shannon Bell wrote in an emailed statement that Agarwal’s “claims against senior executives are completely without basis and we intend to contest them vigorously.”

Reporting by Maria Aspan; Editing by Steve Orlofsky

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