Citigroup resolves four-year New York probe of overcharges

NEW YORK (Reuters) - Citigroup Global Markets Inc, a unit of Citigroup Inc, has resolved a four-year investigation of fee overcharges, the New York attorney general said on Thursday.

The investigation revealed that CGMI overcharged over 47,000 customers more than $22.5 million in fees, New York Attorney General Eric Schneiderman said in a statement.

Reuters reported in 2015 that, as a result of the probe, Citigroup had agreed to return more than $20 million to customers who paid higher advisory fees than they had negotiated, or did not receive rebates when their accounts were frozen.

In the agreement announced by Schneiderman’s office on Thursday, Citigroup agreed to pay a $1 million penalty and to report overcharge issues to the office for the next three years.

“We are pleased to have this matter resolved,” Citigroup spokeswoman Danielle Romero-Apsilos said in an email.

Reporting By Karen Freifeld; Editing by Alan Crosby