Ex-Citi Banamex unit manager denies involvement in loan fraud

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A former middle manager at Citigroup's Banamex unit in Mexico denied he was involved in abetting a corporate loan fraud involving oil pipeline maintenance company Oceanografia.

Reuters reports that as reported on July 21, Banamex is looking into how it lost more than $500m from the lending to Oceanografia, and has zeroed in on Jose Ortega as a key figure, according to two people familiar with its probe.

The sources said that Ortega changed employee manuals that the bank used when deciding whether to lend to Oceanografia and other companies that supply services to Mexican state oil company Pemex.

The changes resulted in loans to these companies receiving less scrutiny and therefore enabled fraudulent borrowing, the sources said. Ortega could not be reached to comment for that story.

Former employee of Citigroup's Banamex denies he took part in loan fraud

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