Australian Securities And Investments Commission Bans Former Citibank Manager

ASIC has permanently banned a former Citibank manager from providing financial services after an investigation found she conducted over 30 transactions without client authorisation. 

Ms Victoria Cai, of Beverly Hills, New South Wales, was employed as a relationship manager with Citibank between 2006 and 2010 and was responsible for facilitating investment instructions made by clients – particularly in relation to foreign exchange trading.

ASIC found that between December 2009 and August 2010, Ms Cai conducted 31 transactions between client accounts without their authorisation or knowledge and submitted transfer application forms containing falsified signatures. On one occasion, Ms Cai cancelled a client’s term deposit to facilitate one of these transactions.

ASIC also found that Ms Cai altered the frequency at which client account statements were received and suppressed some statements completely so clients had no knowledge of the transactions. Further, there were instances where Ms Cai provided clients with manually generated statements containing fictitious account balances.

Further, ASIC found that in March 2010, Ms Cai transferred US$527,900 to her personal accounts from a client account including $170,000 to facilitate payments to her own mortgage.

ASIC’s action against Ms Cai reflects the Commission’s commitment to ensuring consumer confidence in the financial services system.

The impacted clients have been reimbursed by Citibank. ASIC acknowledges the assistance of Citibank in this matter.

Ms Cai has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.