(CN) – Citigroup will pay $75 million to settle civil charges filed against it Thursday by the Securities Exchange Commission. The SEC accused the banking giant of misleading investors about potential losses stemming from subprime mortgages in 2007. In reaching the deal, the company neither admitted or denied the SEC’s allegations.
The SEC said the company issued misleading statements in telephone calls with analysts and filings about the high-risk mortgages.
Former CFO Gary Crittenden agreed to pay a $100,000 civil penalty. Former head of investor relations, Arthur Tildesley Jr., agreed to pay $80,000.
“Even as late as fall 2007, as the mortgage market was rapidly deteriorating, Citigroup boasted of superior risk management skills in reducing its subprime exposure to approximately $13 billion,” said Robert Khuzami, SEC’s enforcement director. “In fact, billions more in CDO and other subprime exposure sat on its books undisclosed to investors. The rules of financial disclosure are simple – if you choose to speak, speak in full and not in half-truths.”