Former Citigroup Inc. (C) employee Ramesh Sadhwani, accused of running a Ponzi scheme while at the bank, had a lifetime ban from Hong Kong’s securities industry overturned on judicial review.
Alan Wright, a chairman of the city’s Securities and Futures Appeal Tribunal and a High Court judge, substituted a 10-year ban on Sadhwani, according to a ruling posted on the Website of the appeals body yesterday.
Hong Kong’s Securities and Futures Commission sought the lifetime ban after Sadhwani was terminated by Citigroup in 2009 for misrepresenting guaranteed returns on investments and breaching internal bank policies, according to the ruling. Eight of Sadhwani’s clients lodged complaints with Citigroup, claiming about $2.3 million, Wright wrote.
A 10-year ban is “appropriate,” Wright wrote. “Any loss, or even risk of loss, occasioned to the client is a cause for real concern, yet such loss as there may have been in the present matter is not of the greatest order,” he wrote.
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