SEC to appeal ruling striking $285M deal with Citi

WASHINGTON (AP) - The government is appealing a federal judge's ruling that struck down a $285 million civil fraud settlement with Citigroup.

The Securities and Exchange Commission said in a court filing Thursday that it plans to appeal the decision issued last month by U.S. District Judge Jed Rakoff. The judge said the government's deal with Citigroup did not include enough facts to allow him to determine whether it was fair.

The SEC had accused Citigroup Inc. of misleading buyers of a complex mortgage investment and betting against it in 2007. New York-based Citigroup neither admitted nor denied wrongdoing. Rakoff also objected to the lack of admission of liability.

The agency said Thursday that Rakoff had "committed legal error" by requiring a new standard that would deprive investors of immediate relief.

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