Citigroup Inc (NYSE:C) was recently sued for fraud by some of its investors and creditors of a Mexican oil firm. The firm went bankrupt and the prosecutor’s claim that they were harmed a loan scheme from the bank. The scheme was also the reason that Citigroup cut profits by $235 million and fired a dozen workers. Additionally, the company also announced that it had processed more than $1 trillion, in payments through its mobile services platforms. The services have been in use since 2011.

The Mexican oil firm, Oceanografia, collapsed in 2014, owing mainly to loans from Citigroup. The event affected the Dutch Rabobank and several other investors of the oil company. The investors lost a total of $1.1 billion, due to the Citigroup. As per the agreement between the bank and Oceanografia, the bank awarded the company short-term loans. The company did some work for the state run Pemex and in turn, Pemex repaid the bank.

The CEO of Citigroup, Michael Corbat, had stated in February 2014 that a total of $400 million in accounts receivable from Oceanografia were fraudulent. This led to an investigation with the Mexican authorities to unmask the perpetrators. Rabobank now claims that Citigroup was a part of the fraud and continued issuing loans, despite realizing that the company was dependant on these payments for its survival. An SEC probe regarding the matter is already underway.

Citigroup has been making significant progress in its mobile payment solutions, initially started in 2011. The first application to launch was targeted at corporate treasurers, which allowed them to manage payments, while providing real-time notifications. The second application was launched in 2013, targeted at treasury executives, which helped the senior executives make important decisions. Initially, the systems were mainly used in developing markets as more developed countries found the system to be unreliable. However, that has since changed.

Citigroup Inc (NYSE:C) had a trade volume of 23.76 million and gained 2.23% of its share value to reach a close at $39.48 after the February 26 session.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.