According to federal prosecutors, former Citigroup Vice President Gary Foster "used his knowledge of bank operations to commit the ultimate inside job." While at the bank Foster, 35, allegedly used his knowledge to embezzle $19.2 million into a personal bank account in a series of secret money transfers.
And he would have gotten away with it, too, if it weren't for a recent internal audit of the treasury finance department where he worked in!
According to the complaint [PDF], Foster transfered money from various Citigroup accounts to a cash account and then to his personal account (at a different bank). Between July 2010 and December 2010, he allegedly moved roughly $900,000 from Citigroup’s interest expense account and approximately $14.4 million from Citigroup’s debt adjustment account to the bank’s cash account, which he then had wired out of Citigroup’s cash account and into his personal account
Foster was picked up by police yesterday at JFK as he returned home from Beijing. If convicted, the Jersey man faces a maximum sentence of 30 years’ imprisonment on the bank fraud charges. He is expected to appear in federal court in Brooklyn later today.
