Arrest warrants said issued for ex-Citi executives

Sombrero

Feeling the heat.

The authorities in Mexico have issued arrest warrants for former executives of Citigroup’s Mexican subsidiary, Banamex, in an investigation of a $400m fraud.

The New York Times reports that Attorney General Jesús Murillo Karam of Mexico confirmed on Friday that the authorities were seeking the former executives. He declined to say how many were involved.

'Yes, there are warrants, but I won’t say who', Murillo Karam told reporters.

The fraud involved a politically connected marine oil services company, Oceanografía, which borrowed $585m short term from Banamex against contracts that it said it had with Pemex, Mexico’s state-owned oil monopoly. A Banamex investigation determined that $400m of those contracts did not exist only after Mexico’s federal comptroller barred Oceanografía from doing further business with the government.

The head of Oceanografía, Amado Yáñez Osuna, was arrested on Wednesday on fraud charges. Murillo Karam confirmed that his bail had been set at about $6.2m.

To access the complete New York Times article hit the link below:

Mexico Authorizes Arrests in Fraud at Citigroup Unit

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