By Tamara Pupic
Citibank in Abu Dhabi is facing accusations of self-dealing and defrauding investors
An investor has filed a lawsuit against Citibank in Abu Dhabi, accusing it of self-dealing, defrauding investors and attempting to initiate a global cover-up of investor losses.
The investor, Dr. Sami Abbas Hussein Ali, filed the lawsuit (Lawsuit No. 2901/2014) before the Abu Dhabi Commercial Court of First Instance accusing the bank of hiding losses from investors in the Citi Real Estate Asset Management Fund.
The fund was marketed to regional investors in 2004 as a medium-risk investment projected to yield annual revenues at a rate of four percent.
All of the 12 shopping centres in the United Kingdom, in which the fund invested from 2004 to 2006, eventually liquidated, costing investors losses.
Allegedly, some of the investors became aware that they had lost their entire investment only after the bank sent a one-page letter stating the inaccuracy of the previous quarterly reports due to a “Citi Private Bank operational error.”
The lawsuit points out to a series of transactions by the fund’s manager at the time, David Lockhart of the Halladale Group Plc, stating that “Citibank, Halladale Company and Mr. Lockhart achieved huge profits … at the time the Plaintiff lost all the invested money.”
A spokesman for Citibank stated the bank neither was aware of the legal action referred to in the press release nor it considered there was any merit in the allegations contained in the release, for which it would vigorously defend any proceedings brought against it.
Among other reliefs, the plaintiff seeks the return of his entire investment, plus appropriate compensation for the losses suffered by him on account of the wrongful acts of Citibank.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.