by Pam Martens, Wall Street on Parade:
Under the Sarbanes-Oxley Act, publicly traded companies like Citigroup must certify in their filings with the Securities and Exchange Commission that they have adequate internal controls over their financial reporting. Notwithstanding Citgroup’s regular certifications to the SEC that its controls are adequate, we’ve been reading for years now how it claims to be a “victim” of fraud or the “victim” of a wayward employee’s misdeeds.
The latest victimhood to hit Citigroup involves a Mexican oil services firm called Oceanografia. Citigroup’s Mexican banking unit, Banamex, lent $585 million to Oceanografia on the basis of accounts receivables it was to collect on contracts. Citigroup now says it has discovered it is a victim of fraud in that only $185 million of those accounts receivables actually exist at Oceanografia.
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