Facts

Brian Stoker, a former mid-level Citigroup executive, was charged with securities fraud in connection with Citigroup's 2007 marketing of a $1 billion collateralized debt obligation (CDO) backed by assets tied to the housing market. In its enforcement action the SEC contended that that Mr. Stoker was negligent for not disclosing certain information about the transaction in its marketing materials.

Stoker argued that all information was properly disclosed to investors, and that his actions were consistent with industry practices.

Result

After a two-week trial in the Southern District of New York, the jury cleared Stoker of wrongdoing.