NEW YORK (Reuters) - the Securities Exchange Commission internal watchdog examines an allegation that Robert Khuzami, running top official agency, gave preferential treatment to the leaders of Citigroup Inc. by regulation of the Agency with the firm $ 75 million, Bloomberg reported Monday.
Said news agency that Inspector General David Kotz opened the probe after a request from Senator Charles Grassley, an Iowa Republican, who sent an unsigned letter making the allegation.
Khuzami told his staff to soften claims against two frames after conferring a counsel of Citigroup, according to the letter, said the Bloomberg.
He stated that a Citigroup spokesman declined to comment.
Citigroup agreed in July to pay $ 75 million claims for determining dry investments of the bank related to subprime mortgages underestimated as the housing crisis took place.
Former Chief Financial Officer Gary Crittenden and Arthur Tildesley, former head of relations with investors, company has agreed to pay $100,000 and $80,000, respectively, to resolve the related claims. Crittenden and Tildesley, which did not admit or deny the SEC allegations were not charged with fraud.
The SEC John Nester Bloomberg spokesman said the regulation properly held the company and the persons responsible.
"It was the result of a thorough investigation and careful assessment of the evidence and applicable law." We are ready to assist and cooperate with the IG review, "niche said in a statement issued after Khuzami has been invited to comment."
(Statement by Steve James;) (Editing by Lincoln feast)
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