(9 September 2011 – United States) An extended eight-year swindle of US$22.9 million (A$21.5 million) from Citigroup has landed one of its former treasurers in court.Gary Foster, a former vice president in Citigroup’s treasury finance department was arrested in New York in June after returning from a flight out of Bangkok.
It is alleged that Foster transferred money from various accounts to Citigroup’s cash account and then to his personal account at a different bank in eight separate wire transfers.
He used false derivatives deal numbers to create the appearance that the transfers were in support of an existing contract.
The illegal transfers were spotted during an internal audit and the evidence handed over to the FBI.
Initially pleading innocent to the charges, Foster admitted the scam at a hearing in New York. He faces a maximum sentence of ten years in prison.