Citigroup faces criminal inquiry for fraud at Mexico unit

Federal authorities have opened an investigation into a $400 million fraud involving Citigroup's Mexican unit, the New York Times reported, citing people briefed on the matter.

Citigroup disclosed in February it discovered at least $400 million in fraudulent loans at its Mexican subsidiary, Banco Nacional de Mexico, aka Banamex. Employees may have been in on the crime.

The investigation, overseen by the FBI and prosecutors from the U.S. attorney's office in Manhattan, is focusing on whether holes in Citigroup's internal controls contributed to the fraud in Mexico.

Read more from the New York Times.[[In-content Ad]]