Former Citigroup Trader Sues Bank Over Dismissal

A former Citigroup trader named Cindy Lui has filed a lawsuit against the bank for wrongful dismissal in Hong Kong. This comes as part of a series of events that led regulators to slap Citigroup with a hefty $44.6 million fine back in 2022.

Lui, who held the position of vice president at Citigroup in Hong Kong before her termination in 2019, is asking for compensation for lost job opportunities. She’s also claiming about HK$2 million, which is roughly $256,000, in missed pension benefits, including one month’s salary and her 2018 bonus.

The case wrapped up a four-day hearing at Hong Kong’s Labor Tribunal recently, although another session is set to take place on September 27.

The legal troubles for Citigroup began when the Securities and Futures Commission fined the bank in early 2022 due to failures in their internal controls. These issues arose from their Asian trading desks mislabeling interest and misleading clients between 2008 and 2018. As a result, the bank dismissed a team of Hong Kong stock traders in early 2019 following an internal investigation.

A key aspect of the dispute revolves around the question of whether there was a legitimate buyer for Tencent Holdings Ltd. shares on May 18 and 21 in 2018. Citigroup claims that Lui misrepresented the situation by indicating to a client looking to sell shares that there was potential buyer interest, which they assert was not the case.

In response, Lui has denied intentionally misrepresenting any trades, stating that any mistakes were due to failures in the bank’s internal controls, as well as inadequate training materials and procedures. She mentioned that she had raised concerns with her managers but was reassured that the bank was adhering to regulations.

During the hearing, Lui argued that there was indeed a buyer for the shares when the sell order was placed, but the deal ultimately fell through.

Lui was under the supervision of Philip John Shaw, who faced a 10-year ban from the industry last year due to sanctions against his division by the SFC. Lui had been with Citigroup since April 2007 but was let go in March 2019 while working on the trading desk.