NEWARK, New Jersey (AP) — Citigroup Global Markets agreed to pay nearly $1 million to settle state allegations that a failure to supervise two of its Smith Barney agents and maintain accurate records cost investors more than $3 million, state authorities announced yesterday.Citigroup will pay $478,000 in restitution and $500,000 in penalties. The nearly $1 million figure is in addition to $1.6 million already paid by Smith Barney in restitution.

"The penalty and additional restitution ordered in this case is a clear demonstration that the state intends to hold broker-dealers responsible for monitoring their agents' activities, especially where the investing public is at risk," Attorney General Anne Milgram said.

Citigroup Global Markets Inc., part of New York-based Citigroup Inc., neither admitted nor denied any wrongdoing. The company cooperated with the state Bureau of Securities investigation and made changes to increase oversight of its agents, authorities said.