NEW YORK (Reuters) - A former Citigroup Inc manager was found not liable on Tuesday of civil charges of misleading investors, a blow to regulators in one of the few fraud cases brought against a Wall Street executive over the collapse of subprime mortgage investments.
Brian Stoker, who worked on the bank's mortgage investments desk, was charged by the U.S. Securities and Exchange Commission as part of a broader civil lawsuit against the bank in U.S. District Court in Manhattan.
The verdict underlined the difficulty of such cases for securities regulators, who historically have worked to reach settlements with corporations and individuals. The SEC's $285 million settlement with Citigroup itself last year is under appeal following an unusual rejection by Judge Jed Rakoff. The outspoken Rakoff also presided over the two-week-long Stoker trial.
"It does make you realize why perhaps the SEC is a little reluctant to squeeze the trigger," said James Cox, a law professor at
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.
