Citigroup Global Markets was ordered by an arbitration panel to pay more than $11 million to resolve allegations it mishandled the accounts of Larry Hagman, the actor of Dallas fame. About $10 million will go to a charity of Hagman's choice. Citigroup must also pay $460,000 in legal fees and arbitration costs. This is a massive award, the second largest on record.

What remains unclear is exactly what happened. Hagman had charged that Citi committed fraud and breached its fiduciary duty. The allegations involved unspecified securities he held at the bank and the purchase of a life-insurance policy, according to the Financial Times. The FINRA disclosure refers to an allegation of mismanagement by "failing to protect ... prinicipal and investing in unsuitable securities from 2005 until 2009."

The case involved both listed and over-the-counter stocks, according to the disclosure. The details are never released in such cases. But the sheer size of the award is eye-opening.

Hagman's adviser was reportedly Lisa Detanna, who works in Beverly Hills for Morgan Stanley Smith Barney. Hopefully, more details will be forthcoming. It may be a classic case of an advisor taking some extreme churning liberties with client money, sensing a big paycheck. 

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