A former Citigroup executive who oversaw its mutual fund unit is fighting Securities and Exchange Commission allegations that he acted improperly.

A filing with the SEC by Thomas W. Jones, the former chief executive of Citigroup's global investment management unit, said he acted properly in 1999 when the regulator alleges that his unit hired First Data Investor Services Group only after the company agreed to direct investment banking and asset management business to Citigroup.

The SEC concluded that Citigroup's asset management unit "failed to properly disclose the reciprocal business arrangement and revenue guarantee" to the funds' boards and that "such failure evidences fraudulent intent."

Citigroup, which is attempting to settle the case, asked Jones to leave in October. It reported on Jan. 20 that it had set up a $196 million reserve to cover the financial costs of a settlement the SEC staff has agreed to recommend to the commission.

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