A Citigroup Inc. employee was cleared of wrongdoing over his role in selling a $1 billion mortgage-bond deal by a federal jury in Manhattan on Tuesday, in a setback to the government’s efforts to hold individuals accountable for Wall Street’s conduct in the financial crisis.
During a civil trial, the Securities and Exchange Commission contended that Brian Stoker, a former director at the bank responsible for creating complex financial products, should have told investors in offering documents that the bank was actually betting against about half of the value of the residential mortgages underlying the 2007 deal.
‘Enforcement 40’ for 2020
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