ANOTHER SUCCESSFUL LAW SUIT AGAINST THE MOTU

These cases haven't been getting enough attention in the press.

Citigroup to pay $285 million to settle fraud case
By Jonathan Stempel and Aruna Viswanatha

Wed Oct 19, 2011 5:36pm EDT

(Reuters) - Citigroup Inc will pay $285 million to settle charges that it defrauded investors who bought toxic housing-related debt that the bank bet would fail, the U.S. Securities and Exchange Commission said on Wednesday.

The SEC said the bank's Citigroup Global Markets unit misled investors about a $1 billion collateralized debt obligation by failing to reveal it had "significant influence" over the selection of $500 million of underlying assets, and that it took a short position against those assets.

It said one experienced CDO trader called the portfolio "possibly the best short EVER!" while an experienced collateral manager said "the portfolio is horrible."