Insider trading charge: Menezes to pay $2.5 mn

Victor Menezes, a former senior Citigroup executive, has agreed to pay over $2.5 million in a bid to settle charges of insider trading, the US Securities and Exchange Commission said on Tuesday.

Under the settlement, Menezes, 'without admitting or denying the allegations' in the complaint filed by SEC, 'has consented to the entry of a final judgement permanently enjoining him from committing future violations,' the SEC said.

'The final judgement also requires Menezes to pay $1,567,557 of disgorgement, pre-judgement interest of $328, 822.77 and$783,778 civil penalty, totaling almost $2.7 million,' it added.

SEC charged that Menezes, who retired in 2005 as senior vice chairman of Citigroup, allegedly sold Citigroup stock just before the April 15, 2002 company announcement about significant losses in its Argentine operations.

The SEC also said that by selling stock before the earning announcement, Menezes avoided losses of more than $1.5 million.

The SEC charged that Menezes, 56, was aware that the company was going to incur income losses in the range of $691 to $1,381 million before selling the stocks, thanks to an internal presentation.