Citibank Loses Key Decision in Investor Lawsuit; Court to Appoint Expert Panel

The Court's decision is a critical and important step in the plaintiff's attempt to ensure that Citibank will be held responsible for defrauding its investors, and the attorneys representing the plaintiff are looking forward to presenting the evidence to the Committee of Experts.

Investor Dr. Sami Abbas Hussein Ali sued Citibank and related entities in November 2014. The lawsuit contends Citibank International PLC, Citi Private Bank, and Citi Private Bank – Abu Dhabi:

Citibank marketed the CReAM Fund to investors in the GCC countries of the Middle East in 2004 as a medium risk investment projected to yield annual revenues at a rate of 4 percent. From 2004 to 2006, the CReAM Fund, which was managed by David Lockhart of the Halladale Group Plc, invested in 12 shopping centers in the United Kingdom.

However, unknown to investors, Mr. Lockhart's employer, Halladale, appears to have owned one of the shopping centers, which was sold to the CReAM Fund at questionable values. All of the shopping centers eventually liquidated, costing investors millions of dollars.

Mr. Lockhart, through a new entity known as New River, in 2008 purchased the assets of CReAM Fund at distressed prices. Again, none of the proceeds went to the original investors.

"Citibank, Halladale Company and Mr. Lockhart achieved huge profits…at the time the Plaintiff lost all the invested money," according to the lawsuit.