Mexican Businessman Arrested In $400 Million Citigroup Fraud Case

SAN FRANCISCO, CA - APRIL 18: A cyclist rides his bike past the Citigroup center on April 18, 2011 in San Francisco, California. Citigroup's first-quarter profit dropped 32 percent with quarterly earnings of $3.0 billion, or 10 cents per share, compared to $4.4 billion, or 15 cents per share one year ago. (Photo by Justin Sullivan/Getty Images) (Getty Images)

Mexican prosecutors have filed fraud charges against a businessman linked to a $400 million loss at Citigroup's Mexican bank subsidiary.

The Attorney General's Office executed an arrest warrant Thursday against Omar Amado Yanez Osuna, for his involvement in an alleged fraud committed by his company Ocenanografía against Banamex.

Citigroup subsidiary Banamex recently fired 11 employees for not following proper procedures in dealing with the Oceanografia oil services company.

Yanez Osuna, 49 years old, is a graduate engineer with a master's degree from the University of Texas.

Yanez had been under a form of house arrest while under investigation.

The arrest warrant announced Thursday would normally mean a suspect is sent to prison while a judge decides whether to hold him over for trial.

However, the attorney general's office said Yanez is under police guard at a hospital where he is recovering from surgery.

In February, Banamex announced that Oceanografia had used falsified invoices as collateral to obtain $585 million in loans. Citigroup could verify only $185 million of invoices.

Based on reporting by the Associated Press.