Citibank Will Return Swept Funds To Customers, With Interest

Citibank has agreed to a settlement with the state of California for violating that state’s False Claims Act and illegally “sweeping” more than $14 million from its customers’ accounts into its general fund.  The unlawful behavior was uncovered and brought to light by a whistleblower within the company, who was later fired after discussing the wrongful practice with an internal audit team. According to the Central Valley Business Times, which reported the settlement on August 26, 2008, Citibank will pay back all the funds it stole from its customers with 10 percent interest. In addition, the company will pay $3.5 million to the state of California for damages and civil penalties. More than 53,000 customer accounts were affected by the practice. If you are seeing fraud on the government, contact us by calling 800,377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.