Citigroup (NYSE: C) Faced 1,000 Angry Investors at Belgian Trial

Citigroup (NYSE: C) faced criminal charges and over 1,000 angry investors at a trial that began in Brussels on Tuesday, as a trial began which is questioning the way that Citigroup sold investments connect to Lehman Brothers in Belgium.

Citibank Belgium is accused of failing to sufficiently inform investors about the risked involved in investment products. Investor groups say that their investments had lost over 140 million Euros, or about $210.90 million, after Lehman Brothers failed in September of 2008.

One of Citibank’s lawyers, Joost Everaet, said that the bank has solid sales practices which were correctly followed in Citibank Belgium’s investment sales.

Some of Citibank Belgium’s investors said that they had believed their money was guaranteed after agreeing to have it moved from savings or current accounts. One of the investor, Monique Verhoust-Piroulle, told reports that “I was in the bank and the cashier looked at my account and said I should move the money across.” Verhoust-Pirouelle had lost about 10,000 Euros that she had inherited from her mother’s estate. “We thought it was guaranteed,” she said.

The trial was opened in a disused brewery in Brussels and the court is allowing all investors to attend. Some predict that the trial could last anywhere from 2-3 year

Citibank’s Belgian unit said in a statement that it was disappointed and that members of its management team had been singled out on what was “clearly an industry issue.”

In a statement to reporters, the bank said that, “We remain confident in our policies and procedures and we have strong arguments to defend ourselves against the allegations leveled against us.”