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Citi Sued Over Alleged Illegal Forex Markups

Citi Sued Over Alleged Illegal Forex Markups

Yesterday, two Mexican foreign exchange traders filed a lawsuit in New York federal court alleging the banking giant, whom they had entrusted millions, illegally marked up their spot foreign currency orders without disclosing the markups. The suit alleges the bank made over $20 million on the suspect transactions.  

In their suit, Plaintiffs Eduardo and Gervasio Negrete alleged Citibank took advantage of their substantial daily trading over almost three decades, by adding an undisclosed markup of one to three points per transaction. In the process, the bank failed to execute trades as directed, misrepresented why certain trades weren’t’t made and made undisclosed profits on trades that were executed.

Although the traders had been conducting business with Citibank and its predecessors for over 27 years, the trading disputes which are the subject of the lawsuit are International Swaps and Derivatives Association (ISDA) master agreements that were executed in 2007 and 2010.

The experienced securities litigation attorneys at Colling Gilbert Wright have litigated and resolved hundreds of FINRA arbitration claims. If you believe you lost money due to negligence or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.