CORRECTED – UPDATE 1-Citigroup settles cemeteries’ funds case

(Corrects headline to show bank settled)

* Bank accused of supervisory failures over trust funds

* $750,000 fine, $750,000 disgorged commissions-FINRA

* Citigroup says cooperated with authorities

NEW YORK, May 26 (BestGrowthStock) – Citigroup Inc (C.N: ) agreed to
pay $1.5 million to settle charges over its handling of trust
funds belonging to cemeteries in Michigan and Tennessee.

The Financial Industry Regulatory Authority, which
regulates brokerages, said Citigroup agreed to pay a $750,000
fine and surrender $750,000 of commissions.

It said the commissions are being returned to cemetery
trusts as partial restitution.

The New York-based bank did not admit wrongdoing. Citigroup
spokesman Alex Samuelson said the bank cooperated with
authorities and that the matter related to one former broker at
a Smith Barney office.

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(Reporting by Jonathan Stempel, editing by Leslie Gevirtz)

CORRECTED – UPDATE 1-Citigroup settles cemeteries’ funds case