Citibank Wins Case After Firing Banker For 'Lying' About 2-Sandwich Lunch Expense

Szabolcs Fekete, a senior analyst who lost his job for filing an expense claim that included coffee and sandwiches for his partner along with false information, has lost the lawsuit against Citibank.

Szabolcs Fekete v/s Citibank: What was the case about?

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Fekete had alleged unfair and wrongful dismissal following his removal concerning the expenses he claimed for a business trip to Amsterdam in 2022.

The East London employment tribunal dismissed his case last month, ruling in favor of Citibank.

Fekete, who had been with Citi since 2015, traveled to Amsterdam with his partner, who didn't work for the bank, as the tribunal pointed out.

He filed his expenses in late July, insisting that the costs were within the bank's daily limit of €100. Nonetheless, a senior manager informed him that the expenses would be declined, suspecting that the meals listed on the receipt were meant for two people.

As stated in the publicly released ruling on Friday, Fekete responded via email: ¡°I was on the business trip by myself and that I had 2 coffees as they were very small.¡±

Delish

The senior manager expressed doubt about his response, remarking: ¡°The receipt appears to have two sandwiches, two coffees, and another drink?.?.?.?Are you advising that this was all consumed by you?¡±

Fekete replied: ¡°Yes that is correct?.?.?.?On that day I skipped breakfast and only had 1 coffee in the morning. For lunch I had 1 sandwich with a drink and 1 coffee in the restaurant and took another coffee back to the office with me and had the second sandwich in the afternoon?.?.?.?Which also served as my dinner.¡±

He added that the amounts were ¡°well within my €100 limit¡±.

Following additional inquiries from the manager, the ruling indicated that Fekete responded: ¡°All my expenses are within the €100 daily allowance. Could you please outline what your concern is as I don¡¯t think I have to justify my eating habits to this extent.¡±

The senior manager elevated the expense claim to Citi's ethics office in early August, triggering an internal investigation.

Fekete underwent questioning during a Zoom meeting in August, during which he was asked if he had dined with his partner and consumed "pasta pesto and a bolognese." Fekete denied this allegation.

Pesto

In August, Fekete admitted that some of the food expenses were indeed for his partner. Citi's investigation in October determined that he had violated the company's expense management policy and provided false information during the internal inquiry.

Why did Feteke's contract was terminated?

In November 2022, Citi terminated his employment due to gross misconduct.

During a disciplinary hearing, Fekete, a senior analyst in charge of Emea regulatory exam management and oversight, explained that he had been on medical leave and medication for several weeks following his trip to Amsterdam. He also mentioned the recent loss of a family member in his defense.

Judge Illing, presiding over the employment case, ruled that Citi had the authority to terminate Fekete's employment as he ¡°was employed in a position of trust in a global financial institution¡± and said the case ¡°is not about the sums of money involved¡±.

What did Judge state in his ruling?

In the written judgment, the judge stated: ¡°I have accepted that the expense report may have been submitted in error. However, I am satisfied that a dismissal in relation to the misrepresentation allegation alone would fall within the band of a reasonable response by a reasonable employer.¡±

He added: ¡°I am satisfied that even if the expense claim had been filed under a misunderstanding, there was an obligation upon the claimant to own up and rectify the position at the first opportunity. I accept that the respondent requires a commitment to honesty from its employees.¡±

How did Citi react to the verdict?

Citi said: ¡°We are pleased with the decision.¡±

In the UK, financial institutions and regulators have taken strict actions against executives accused of personal misconduct, even for small sums of money. For instance 2020, Citi suspended a senior bond trader for allegedly stealing food from the office canteen.

Mizuho Bank in Japan fired a London banker in 2016 for stealing a chain wheel guard from a colleague's bike, which was valued at about ?5.

In 2014, the Financial Conduct Authority banned Jonathan Burrows, a managing director at BlackRock Asset Management Investor Services, from holding senior roles in the UK financial sector. This was due to his repeated evasion of train fare payments during his commute to the City, which eventually resulted in him paying ?43,000 to settle the case.

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