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Non-Tech : Banks--- Betting on the recovery

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From: tejek	6/27/2011 3:20:04 PM
	of 1428

Citigroup Exec Charged With Embezzlement NEW YORK (TheStreet) -- A former vice president at Citigroup's(C_) treasury finance department has been arrested on charges arising from an embezzlement of more than $19 million, according to a statement from the United States Attorney's Office. Gary Foster, 35, was apprehended at the JFK airport Sunday morning and is scheduled to appear before the Brooklyn Courthouse Monday afternoon. If convicted, he faces maximum sentence of 30 years' imprisonment on the bank fraud charges. According to the FBI complaint, Foster transferred money from various Citigroup accounts to Citigroup's cash account and then to his personal account at a different bank. Between July 2010 and December 2010, he allegedly caused approximately $900,000 to be moved from Citigroup's interest expense account and approximately $14.4 million from Citigroup's debt adjustment account to the bank's cash account, and then caused the money to be wired out of Citigroup's cash account to his personal account at another bank in eight separate wire transfers. To create the appearance that the transfers were in support of an existing contract, Foster caused a fraudulent contract or deal number to be placed in the reference line of the wire transfer instructions, the FBI further charges. "We are outraged by the actions of this former employee," a Citi spokesperson said in a statement. "Citi informed law enforcement immediately upon discovery of the suspicious transactions and we are cooperating fully to ensure Mr. Foster is prosecuted to the full extent of the law." "The egregious behavior of those who would exploit our banking system for personal and criminal gain will not be tolerated. We remain committed to investigating and apprehending those who cheat the system," said FBI Assistant Director-in-Charge Fedarcyk. --Written by Shanthi Bharatwaj in New York thestreet.com

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