Last Sunday morning, Gary Foster, a former Citigroup Inc. assistant vice president was arrested by Federal Bureau of Investigation agents after allegedly embezzling more than $19.2 million from Citi, an act dubbed by federal prosecutors as, “the ultimate inside job.”
The self-made multi-millionaire has been conducting several transactions from various Citigroup corporate accounts to his own personal account at JP Morgan and Chase between the period of May 2009 and December 2010, per a criminal complaint, until he quit Citi in January of this year. [Wall Street Journal]
Since then, Foster has been living the life that would easily rival a superstar. According to NY Times reporter, Eric Dash, Foster owned six real estate homes in the Manhattan, NY area, as well as affluent towns in New Jersey. One home in Englewood Cliffs, NJ, was retailed at $3 million, and boasted a $500,000 home entertainment system and a Maserati GranTurismo.
However, it wasn’t until several weeks ago when internal auditors noted millions of dollars that were missing in their accounting records. Foster was traveling in Europe and Asia when he was informed by his parents of his impending arrest, and immediately returned home via Bangkok.
During a hearing in Federal District Court in Brooklyn last Monday, Foster pleaded not guilty on charges of bank fraud, and holds an $800,000 bond. If convicted on such charges, Foster faces up to 30 years in prison. [NY Times]
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