Vanguard reportedly filed a civil suit against Citibank and Salomon Smith Barney alleging the firms fraudulently sold it $70 million of worthless Enron bonds.

Vanguard claims that the two firms collaborated to disguise the defunct energy trader's mounting debt to Citibank using commodity investment accounts, which were used to back Enron bonds. Those bonds were then sold to investors, including Vanguard, and turned out to be worthless after Enron went bankrupt in 2001, the lawsuit alleges.

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