U.S. Department of Justice

United States Attorney's Office
Eastern District of New York

Former Citigroup Vice President Charged in New York with Bank Fraud for Embezzling More Than $19 Million

BROOKLYN, N.Y. – Gary Foster, a former vice president in Citigroup Inc.’s treasury finance department, has been arrested on bank fraud charges arising from his embezzlement of more than $19 million.  Foster was apprehended at John F. Kennedy International Airport Sunday morning when he arrived on a flight from Bangkok.

The defendant’s initial appearance is scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr., in Brooklyn, N.Y.

The charges and arrest were announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; and Janice K. Fedarcyk, FBI Assistant Director-in-Charge, New York Field Office

According to the 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.  The complaint further charges that Foster caused a fraudulent contract or deal number to be placed in the reference line of the wire transfer instructions to create the appearance that the transfers were in support of an existing contract.

“The defendant allegedly used his knowledge of bank operations to commit the ultimate inside job.  We are committed to ensuring the integrity of the banking system and to prosecuting those who would undermine it for their personal gain,” stated U.S. Attorney Lynch.  U.S. Attorney Lynch expressed her appreciation to Citigroup, which brought this matter to the attention of the FBI and the U.S. Attorney’s Office.

“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.

If convicted, the defendant faces a maximum sentence of 30 years in prison on the bank fraud charges.

The government’s case is being prosecuted by Assistant U.S. Attorneys Michael L. Yaeger and Karen Hennigan.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement working together to launch a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. The Special Inspector General for the Troubled Asset Relief Program co-chairs the task force’s Rescue Fraud Working Group.  For more information on the task force, visit www.StopFraud.gov.

Foster Complaint

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GENERAL INFORMATION
Financial Fraud Enforcement Task Force

 Leadership
Eric Holder, Attorney General, Chair
 
 Contact
(202) 514-2000
Recursos Para Vctimas de Fraude
What is Financial Fraud?
What is Financial Fraud?

Financial Fraud encompasses a wide range of illegal behavior - from mortgage scams to Ponzi schemes, credit card theft to tax fraud. Everyone is affected by financial fraud.