The NASD has fined Citigroup Global Markets more than $1.1 million in fines and restitution for failing to prevent more than 100 of its brokers from filing false disability claims with mutual fund companies between June 2001 and June 2002 in order to waive the contingent deferred sales charges on clients' holdings.

The firm must pay a fine of $400,00 and return $715,000 in restitution to the affected mutual fund companies, which were not named.

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