Citigroup Executives Cited In Fraud Case Resign

Posted by Orb Staff on September 18, 2012 No Comments
Categories : Residential Mortgage

12406_citigroup_logo Citigroup Executives Cited In Fraud Case Resign Two Citigroup Inc. executives named by federal prosecutors in a mortgage insurance fraud case have resigned from their jobs.

According to a Bloomberg News report, the departing executives are Jeffrey Polkinghorne, senior risk manager at the CitiMortgage division, and Donald Houghtalin, a compliance officer in the division. Both men were cited in a case where the federal government accused Citigroup of violating Federal Housing Administration requirements regarding which residential mortgages could be federally insured against loss.

Although both Polkinghorne and Houghtalin were cited in the case, which resulted in a $158.3 million settlement and Citigroup's acknowledgement of wrongdoing, neither were indicted by federal prosecutors.

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