Citibank Ex-Employee Claims Termination Over Refusal to Mislead Regulator

NEW YORK, May 22 (Reuters) - A previous managing director at Citigroup (C.N) initiated legal action against the bank and its chief operating officer, asserting she was terminated for resisting efforts to provide regulators with inaccurate information.

Kathleen Martin, employed by Citi in 2021 to address data concerns, claimed in a lawsuit filed in a New York federal court that COO Anand Selva urged her to conceal "essential details" from the Office of the Comptroller of the Currency (OCC) regarding the bank's data management measurements.

A spokesperson for Citigroup and Selva responded, stating, "This lawsuit lacks merit, and we will vigorously contest it." The OCC did not offer immediate commentary. The lawsuit contends that Selva aimed to conceal information to avoid tarnishing the bank's image. It further alleges that Selva pressured Martin to falsely inform the regulator that Citi had attained specific objectives, despite not having done so.

The lawsuit claims that Martin was terminated on September 25, 2023, in retaliation for her complaints. It asserts that her work on data governance was linked to a 2020 OCC consent order. In 2020, both the OCC and the Federal Reserve directed Citibank to address significant and widespread deficiencies in risk management, data governance, and internal controls. 

Martin's attorney, Valdi Licul of Wigdor LLP, stated that her client consistently acted in Citi's best interests. Martin is seeking reinstatement with the same seniority status and is pursuing back pay, including bonuses. The case is identified as Martin v. Citibank NA et al, U.S. District Court, Southern District of New York, No. 24-03949.

Source: Reuters