A Tale of Two 'Citis'; A Joint Venture or a Limited Liability Company?

A Tale of Two 'Citis'; A Joint Venture or a Limited Liability
Company? 


HOLMDEL, N.J., Feb. 28  /PRNewswire/ -- Nine million corporate, government,
health care, educational, not-for-profit and Taft-Hartley workers, have $200
billion in retirement funds entrusted to the self proclaimed joint venture
called 'CitiStreet'. However, the purported 50/50 State Street and Citigroup
joint venture, is merely a Delaware Limited Liability Company, according to
CitiStreet LLC's, President and board member, Robert Dughi.

The issue arose in Brooklyn federal court. On January 5, 2005, Dughi testified,
though at times conflicted, that the 'CitiStreet' joint venture is really
CitiStreet, LLC.

Attorneys for Citigroup, Inc., and State Street Corp, have insisted that
"CitiStreet is not and never has been a legal entity." Plaintiff disagreed.

The court found that Dughi's testimony, regarding CitiStreet being a Limited
Liability Company, and not a joint venture, was credible enough for the
Citigroup and State Street attorneys to rely upon, in denying the existence of
the 'CitiStreet' joint venture to the court. Plaintiff is appealing.

Press releases on CitiStreet's website, http://www.citistreetonline.com/ ,
state: "CitiStreet is a 50/50 joint venture between State Street Corp., (NYSE:
STT) and Citigroup (NYSE:C)."

Federal filings reveal 'CitiStreet' received commissions from Travelers, for
sales at Brooklyn's Lutheran Medical Center (LMC). LMC, had previously asserted
to the court that 'CitiStreet' was a joint venture.

On January 13, 2005 'CitiStreet' announced Dughi's retirement as President of
'CitiStreet', stating 'CitiStreet' was "the joint venture between Citigroup and
State Street formed in 2000."

On February 15, 2005, 'CitiStreet' announced that Dughi's boss, 'CitiStreet'
Chairman and CEO, James Phalen, a former State Street Corporation executive,
was also being replaced.

  Both Dughi and Phalen had been with 'CitiStreet' from its inception.

  About LoPresti v. Citigroup et al, Docket Number 02-cv-6492 (SJ)(VVP).


Carmine A. LoPresti is plaintiff, in an ERISA, RICO and Antitrust case. The
above entities are among the co-defendants. The action arises from LoPresti's
ouster as an annuity salesperson at LMC, after LMC gave 'Citistreet' exclusive
rights to sell its retirement products to LMC employees. After 25 years at LMC,
LMC denied LoPresti access to the hospital premises, and the 700 LMC employees
placing elective salary reductions into 403(b) annuities that LoPresti sold and
serviced. The case is pending in U.S. District Court, Eastern District of N.Y.

LoPresti's website at http://www.carminelopresti.com/ contains some case
filings, and the transcript of the January 5, 2005 hearing. 

DATASOURCE: Carmine A. LoPresti



CONTACT:  Carmine A. LoPresti, [phone]



Web site:  http://www.carminelopresti.com/

http://www.citistreetonline.com/ 

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