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Dec 24, 2003 | New York Post

An investor won $1.5 million from Citigroup in arbitration yesterday, after arbitrators found that the nation's largest financial company improperly handled her investments.

In a complaint filed in March 2002, Linda Nash claimed a broker with Citigroup's subsidiary Salomon Smith Barney bungled her investment in WorldCom Inc. A three-member NASD panel found that the company and the broker, Mark Clayton Callaway, were liable for "claims of breach of contract and negligence and for violations of federal and state laws."

The specific violations were not made public.

According to the NASD Web site, 55 claims against Citigroup have been settled this year, of which Nash's judgment is the largest.

Citigroup and Salomon Smith Barney have been accused of misrepresenting WorldCom's financial condition before the company filed the largest bankruptcy in U.S. history.

Representatives for Citigroup, the NASD and Nash declined to comment.

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