Former Citigroup VP Accused of Embezzling $19 Million

By Frank Yu
Frank Yu
Frank Yu
June 27, 2011 Updated: October 1, 2015

People walking by a Citibank office in midtown Manhattan on April 19, 2010 in New York City. (Spencer Platt/Getty Images)
People walking by a Citibank office in midtown Manhattan on April 19, 2010 in New York City. (Spencer Platt/Getty Images)
NEW YORK—A former vice president at banking giant Citigroup Inc. was accused on Monday of embezzling $19 million by diverting payments to his personal bank account, according to federal prosecutors.

Gary Foster, 35, worked in corporate treasury finance at the New York-based Citigroup. According to a Department of Justice charge against him, he illicitly transferred $19 million from Citi’s accounts to accounts at another bank, from July to December 2010.

Foster was arrested Sunday evening at John F. Kennedy International Airport, upon returning from a trip to Thailand.

According to a statement from the prosecutors, Foster had moved more than $14 million from Citigroup’s debt adjustment account to the bank’s cash account, and subsequently to his personal accounts. In addition, he allegedly made cash transfers of $900,000 from the bank’s interest expense account, among others.

To cover up his illegal activity, he allegedly falsified documents and contracts, along with internal Citigroup deal numbers, which were used as reference in his wire transfers.

“We are outraged by the actions of this former employee. 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,” a statement from Citigroup said.

Citi had alerted federal authorities, including the FBI, upon suspecting Foster of these illicit deeds.

Frank Yu