A FINRA arbitration panel has ruled that Citigroup and one of its former branch managers must pay an investor more than $11 million combined in compensation for losses related to an investment in a foreign bank.

The claimant, John Fiorilla, a legal adviser to the Holy See, came to Citigroup in 2006 looking to de-risk a $16 million stock position in Royal Bank of Scotland, according to his attorney, Kevin P. Conway of Conway & Conway in New York. He had requested that Citigroup use derivatives to help hedge his position against losses, but the firm did not complete the request, Conway said. When the market collapsed in 2008, the account lost more than $15 million, he said.

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