Earlier this summer federal prosecutors charged ex-Citigroup VP Gary Foster of embezzling millions from the bank into personal accounts and yesterday he plead guilty to one count of bank fraud. The legally blind banker now faces a maximum of ten years in the slammer for making off with $22.9 million between September 2003 and June 2011.
“I executed a scheme to defraud Citigroup,” Foster told U.S. District Judge Eric Vitaliano yesterday. “I directed funds to be wired into my personal account at JPMorgan.” As part of his plea deal Foster has agreed to forfeit about $16 million in properties. That included some fancy digs and even fancier cars—cars which he couldn't even legally drive!
Apparently Foster pocketed all that that dough by transferring funds and assigning them fraudulent contract numbers so nothing would seem out of order. And for years and years it worked. Citibank didn't even notice the problems until it turned up in an internal audit earlier this year, at which point Foster was already out the door. Foster, a divorced father of two who was arrested in June returning from a vacation to Bangkok, is currently out on bail as he awaits his sentencing. How'd he pay for his bail? His mother, who works a teller for Bank of America, secured his $800,000 bond with her house in Teaneck, New Jersey.