Hong Kong’s Securities and Futures Commission has banned Ramesh Kumar Chuharmal Sadhwani, a former licensed representative of Citigroup Global Markets Asia, from re-entering the industry for 10 years.

Date: Mar 30, 2012

Tags: Hong Kong, Enforcement, Citi

Hong Kong’s Securities and Futures Commission (SFC) has banned Ramesh Kumar Chuharmal Sadhwani, a former licensed representative of Citigroup Global Markets Asia (Citi Asia), from re-entering the industry for 10 years.

The SFC investigation found that Sadhwani operated a fraudulent scheme involving 13 Citi Asia wealth management clients who invested on the basis of representations made by Sadhwani that their money would be pooled and used to purchase US Treasuries and other products.

Sadhwani promised the affected customers that their principal was protected and returns were guaranteed by Citi Asia, said the SFC. Instead, returns were funded wholly or partly from other affected clients induced by Sadhwani’s representations.

Sadhwani’s scheme operated from 2004 to February 2009 until it was discovered by Citi Asia.

As a result of a separate action, Citi Asia is assessing the loss to each of the 13 clients and will make them whole up to the principal amounts they invested.

More details: http://www.sfc.hk/sfcPressRelease/EN/sfcOpenDocServlet?docno=12PR32