After a lengthy investigation by the Securities Division, Marques said, Citigroup agreed to cease and desist from further violations of the State Securities Act. The broker-dealer is also required to retain the services of an outside consultant to review the sales practices and supervisory procedures of their Rhode Island offices.

Maria D'Alessandro, associate director and superintendent of securities, said that the violations of the Securities Act occurred over three to four years and involved "a disregard for and lack of supervision over the sale of unsuitable investments to elderly clients; unauthorized trading; complaints relating to the inappropriate replacement and sale of variable annuity contracts, which saddled the clients with unnecessary and inappropriate sales charges; and the misappropriation of client funds."

The Securities Division previously barred the key individual, who was not identified in the press release, conducting the unlawful activity from the securities industry in this state.