Monday, June 27, 2011

Former Citigroup Exec Charged With Embezzling $19.2 Million From Bank

Gary Foster, 35, of Englewood Cliffs, New Jersey, was arrested yesterday on charges he embezzled about $19.2 million from Citigroup, where he had been employed as a vice president.  According to authorities, over a period of 1 1/2 years, from May 2009 to December 2010, Foster transferred the funds from Citigroup's debt-adjustment and interest-expense accounts to a cash account and then wired the funds to his own personal bank account at JPMorgan Chase.  An internal audit by the bank's treasury department discovered the apparent misappropriation and Citigroup immediately contacted law enforcement officials, according to reports.  Prosecutors dubbed the theft "the ultimate inside job."  Foster has plead not guilty to the bank fraud charges, which carry a 30-year maximum sentence.

Read the story here, here and here.

Update (9/6/11): Foster pleaded guilty today to charges he embezzled what is now believed to be $22 million from Citibank.  Foster's scheme spanned nearly 8 years, beginning in September 2003, according to prosecutors.

Update (6/30/12): Foster was sentenced to 97 months in prison for embezzling what is now understood to be nearly $23 million from Citibank.

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