**Citigroup Reinstates Senior Trader Amid Settlement Over Dismissal**
Citigroup Inc. has reversed the termination of a senior trader in Japan, Ken Ohtaka, as part of a settlement related to a wrongful dismissal claim. This decision comes after prolonged negotiations concerning the bank’s trading practices in its Asia division. Ohtaka, who previously led Citigroup’s agency trading in Tokyo, had his dismissal annulled following an agreement reached last month, as reported by Bloomberg News.
Ohtaka opted out of a confidentiality clause in the settlement, allowing him to speak freely about what he describes as a “global witch hunt for scapegoats” that led to multiple firings. He criticized the internal investigation initiated in 2018 by the law firm Clifford Chance, labeling it as “flawed” and suggesting that its conclusions were predetermined to assign blame to a group of Asia equity sales traders.
In court documents related to his wrongful dismissal lawsuit, Ohtaka stated that he experienced significant mental distress due to being fired without any disciplinary justification. While the specific terms of the settlement remain undisclosed, Citigroup maintains that it acted appropriately in response to conduct that did not meet its high standards. A spokesperson for the bank emphasized that all investigations are based on factual evidence and conducted with the help of independent experts when necessary. The bank has also implemented substantial remedial measures to enhance compliance and internal controls.
Ohtaka’s case is part of a broader issue that began when Hong Kong’s securities regulator discovered that traders in Citigroup’s Asia markets division had misrepresented the bank’s stock positions as client interest for over a decade. The Securities and Futures Commission (SFC) found that this “pervasive dishonest behavior” dated back to 2008, leading to a fine of approximately $45 million for Citigroup due to internal control failures and inadequate management oversight.
Following the SFC’s review, Citigroup launched its own investigation shortly after Ohtaka joined the firm in 2018. This inquiry ultimately resulted in Ohtaka’s dismissal in late 2020, following the termination of a dozen traders in Hong Kong and Singapore the previous year. In Tokyo, six traders either resigned voluntarily or were given the option to do so to avoid termination, while four others faced disciplinary actions, including bonus reductions.
As Ohtaka, now 58, joins several former employees in legal action against the bank, the implications of this case continue to unfold, highlighting ongoing concerns about trading practices and corporate governance within Citigroup’s Asia operations.
**FAQ**
**What led to Ken Ohtaka’s dismissal from Citigroup?**
Ken Ohtaka was dismissed amid an internal investigation into trading practices within Citigroup’s Asia division, which was later criticized for its methodology and conclusions.
