Former Citigroup VP Charged With Embezzlement

Harriet Davies Editor - Family Wealth Report 28 June 2011


A former vice president at
Citigroup has been charged with embezzling $19 million from the bank, Bloomberg reports.

Gary Foster was arrested on 26 June at John F Kennedy International Airport while returning from Bangkok and charged with bank fraud, according to the publication. He is set to make an initial appearance on the coming Monday at a federal court in Brooklyn and faces a maximum sentence of 30 years in prison if found guilty on that charge.

Foster reportedly worked in the treasury finance department at Citigroup, and is accused of transferring money from certain accounts at his employer to his own account at JP Morgan Chase & Co. During the period from May 2009 to December 2010, he allegedly diverted a total of $19.2 million to his personal account.

The complaint alleges Foster put fake contract and deal account numbers in the wire-transfer instructions so that they appeared to support an existing contract.

According to the report, Foster joined Citigroup in 1999 and left of his own accord this January.

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