Citi says Sieg targeted by harassment claims to avoid arbitration

Citi is snapping back at a discrimination lawsuit, saying a former executive has accused wealth head Andy Sieg of sexual harassment only so she could avoid resolving her case before industry arbitrators.

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In a petition to compel arbitration filed Tuesday in federal court for the Western District of Texas, Citi contended that former global head of platform and experiences Julia Carreon repeatedly praised Sieg in emails to him and the firm’s human resources department before resigning in 2024. That painted a stark contrast to the lawsuit Carreon filed in federal court in New York on Monday, in which she accused Sieg of “unrelenting and egregious sexual harassment, manipulation, and grooming.”

“Nothing could be farther from the truth; there is absolutely no factual or legal basis for any such allegation against Mr. Sieg,” Citi said in its response. “[Carreon’s] own words confirm unequivocally that she was never sexually harassed by Mr. Sieg. She cannot properly or plausibly plead such a claim.”

Citi argues Carreon concocted false instances of alleged sexual harassment to sidestep an internal policy that makes arbitration “the required and exclusive forum” for resolving disputes between the firm and its employees. Carreon’s suit cites the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, a 2022 law meant to ensure these sorts of claims are “adjudicated and redressed through the court system” rather than before a panel of arbitrators.

READ MORE: Ex-Citi exec alleges sexual harassment against Sieg in lawsuit

Carreon’s lawsuit accused Sieg of repeatedly insinuating in public settings that he and Carreon were in an intimate relationship and doing nothing to quell a widespread false assumption that Carreon was sleeping with him. Against those assertions, Citi instances various messages Carreon allegedly sent to Sieg and the firm’s human resources department around the time of her departure:

They include:

An email sent on May 27, 2024, to both Sieg and her direct boss, Valentin Valderrabano — then chief operating officer of Citi’s wealth management division — about her plan to resign. In it, she allegedly wrote, “Andy’s leadership is the best thing to happen to this place; rooting for you!”A message sent two days later to Sieg allegedly saying, “thank you for recognizing my talent, for putting me in the room, and for treating me with respect. You are truly one of the most exceptional people & leaders I’ve ever met. Your integrity is irreproachable. The kindness you show junior talent is inspirational. And the way you engage in every aspect of the business is incredible. Chris [Carreon’s husband] & I can’t wait to watch the impact you’ll have on Citibank. They are so lucky to have you.”A message sent on May 29 to Citi’s human resources department suggesting she had no interest in suing the firm. She allegedly wrote, “I would hate to do that to Andy given what an incredible advocate he’s been, and I hate to even write this bc it’s so obvious: Andy is an advocate bc he knows I’m in the 1% of people on Wall Street who can execute the right way: collaboratively. I wouldn’t be successful enough to be on a Times Square billboard if that wasn’t true.”

Carreon, whose LinkedIn page lists her now as a strategic advisor at the RIA Veritas Wealth Partners, did not respond to a request for comment. Carreon’s lawyer told Bloomberg that her clients’ past statements to Citigroup’s human resources department and Sieg don’t disprove the allegations in her suit.

“Two things can be true: she may have felt that way on the day, but also that he cultivated a culture of sexism that destroyed her career,” said Linda Friedman, Carreon’s attorney. “Many people learn more about their situations after they happen by talking to other people. She has spent time talking to people and understanding the trust she had in him was misplaced.”

READ MORE: What Sieg’s public rebuttal could mean for his future at Citi Wealth

In a LinkedIn post on Monday, Carreon said that her lawyer “spent 14 months trying to resolve this matter privately, but Citi’s lawyer said he welcomed a public match.”

Carreon’s suit does not name Sieg as a defendant and instead accuses the firm and its brokerage unit, Citigroup Global Markets, of sexual and racial discrimination. Citi argues in its petition Tuesday that because the instances of Sieg’s harassment cited by Carreon were fabricated, her dispute rightfully belongs in arbitration.

Carreon came to Citi in 2021 after spending years at Wells Fargo, where she had risen to become chief digital officer of the firm’s private bank. Citi’s lawsuit says she was initially brought in to work on project management and infrastructure for the firm’s wealth management unit.

In 2022, she began reporting directly to Valderrabano, who has since become chief commercial officer for HBSC’s international wealth and premier banking division. Carreon’s promotion to head of wealth platforms and experience came roughly two years later.

That position had Carreon managing roughly 60 employees and made her responsible for all of clients’ digital dealings with the firm. Citi’s suit notes that those responsibilities had formerly fallen to a male colleague running the firm’s wealthtech organization.

READ MORE: Citi rewards Sieg with $13M payday following ‘turning point’ year

Carreon’s lawsuit comes amid Citi’s extensive efforts to overhaul its wealth management unit. Sieg was recruited to Citi from Merrill in 2023 as part of CEO Jane Fraser’s plan to reinvigorate the flagging wealth business.

Citi’s suit suggests Sieg and Carreon worked well together in part because of their similar wirehouse backgrounds. The suit says she at times used this closeness to imply she had power over Vaderrabano and her other colleagues.

Carreon, according to the suit, was interviewed by employee relations representatives in May 2024 “not because anyone insinuated she had a romantic relationship with Mr. Sieg, but because her female and male colleagues raised complaints about her behavior, including that she implied to other employees that she was very close to Mr. Sieg, such that she could have them terminated and felt comfortable treating the direct reports of Mr. Sieg poorly.”

Shortly after leaving Citi, according to the suit, Carreon wrote to both Sieg and Valderrabano in praise of their work overhauling the firm’s wealth management division.

“Thank you both for attempting to change the culture,” she allegedly wrote. “It’s not easy. Particularly not for change makers. Tmrw is my last day. Appreciate you. Can’t wait to watch the great things you’ll do.”

This is the second time in six months that legal questions have arisen about Sieg’s behavior. Bloomberg reported in August that Citi had retained the outside law firm Paul Weiss to look into alleged instances of misbehavior by Sieg, including expletive-filled rants. At least six managing directors at Citi lodged human resources complaints against Sieg, Bloomberg reported. His treatment of former private banking head Ida Liu, who now leads HSBC’s global private bank, came under particular scrutiny about a year ago.

Throughout it all, Citi has stood by Sieg. Fraser said in an interview with Bloomberg TV in September that she was “comfortable” with the way the outside investigation into Sieg’s alleged misconduct had gone and expressed confidence in his work in the firm’s wealth management division. Sieg was paid $13 million for his work at the firm in 2024, which Citi has called a “turning point” year for its wealth business.

Citi is also a defendant in a lawsuit brought by Ardith Lindsey, a managing director in the bank’s global equities market division who is currently on leave. Lindsey alleges that she has experienced a hostile work environment and unlawful discrimination, and was coerced into a relationship with a boss. When the suit was filed, Citi vowed to defend itself against the allegations.