In Citigroup Case, a Risk Rating Investors Didn't See -- Fair Game

``Mr. Hosier and Mr. Murdock were not happy customers. They accused Citigroup of fraud and breach of fiduciary duty, saying they had been misled about complex, risky investments that Citigroup had held out as safe and sound. Last April, a securities arbitration panel agreed with them. The men won the largest sum ever awarded to individuals in such a proceeding -- a total of $54.1 million... [Citigroup filed an appeal]. In late December, Judge Christine M. Arguello, in the District of Colorado, ruled against Citigroup and affirmed the award. So what do the documents show? Among other things, that Citigroup itself viewed these investments as risky. On its internal scale of 1 to 5 -- 1 being the safest, 5 the riskiest -- this stuff was rated 5. The filings also show how Citigroup tried to deflect problems when the investments began to sour.''