MEXICO CITY, Oct 28 (Reuters) - A Mexican court on Tuesday ruled the chief executive of oil services company Oceanografia , which is at the center of a fraud scandal that cost Citigroup Inc millions of dollars, must stay in jail while his case proceeds.
The court ruled that Amado Yanez, who was detained last week, should remain in custody due to his “probable criminal responsibility” for supplying false information to a bank to obtain credit, according to a statement from judicial authorities.
Citigroup says it lost more than $500 million after its Mexican unit Banamex made loans to Oceanografia backed by bogus work orders from state-run oil giant Pemex.
Oceanografia, which is now in bankruptcy proceedings, was a top oil services provider to Pemex over the past decade, winning billions of dollars in contracts. (Reporting By Alexandra Alper; Editing by Jeremy Laurence)