Citigroup faces criminal inquiry for fraud at Mexico unit: NYT

Citigroup disclosed in February it had discovered at least $400 million in fraudulent loans in its Mexico subsidiary, Banco Nacional de Mexico, known as Banamex, and said employees may have been in on the crime. The investigation, overseen by the FBI and prosecutors from the United States attorney's office in Manhattan, is focusing on whether holes in Citigroup's internal controls contributed to the fraud in Mexico, the New York Times said. The FBI and prosecutors are questioning whether Citigroup was equal parts victim and enabler, the newspaper said. Reuters reported in February that the U.S. Federal Bureau of Investigation was aware of Citigroup's loan losses due to fraud by a Mexican company and was monitoring the situation for possible criminal activity.

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