WASHINGTON - The two Citigroup companies agreed to $180 million on Monday to settle charges they defrauded investors by misrepresenting that investments in two now-defunct hedge funds were safe, low-risk and suitable for traditional bond investors.
Citigroup Global Markets and Citigroup Alternative Investments raised almost $3 billion in capital from about 4,000 investors between 2002 and 2007 through the two funds -- ASTA/MAT and Falcon - before they collapsed in 2008, resulting in billions of dollars of losses.
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