Two former executives within the asset management unit of Citigroup will fight Securities and Exchange Commission charges that they siphoned nearly $100 million from mutual fund investors through a finely executed, behind-the-scenes scheme involving a questionable transfer agent setup.

Last week, the SEC filed a long-anticipated enforcement action against former Citigroup Asset Management Chief Executive Officer Thomas W. Jones and the unit's former Senior Vice President, Chief Financial Officer and Fund Treasurer Lewis E. Daidone. The executives, nonetheless, claim that they acted in good faith and are characterizing the regulator's fraud charges as "unfounded and overreaching."

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