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Former Citigroup VP Gary Foster Sentence to 8 Years for Embezzlement of $22 Million

Do you remember this case from last year? A former Citigroup vice president, Gary Foster has been sentenced in New York City to eight years in prison for embezzling more than $22 million.

Citigroup’s former VP Gary Foster, lived on a $100,000 annual income but apparently this was not enough for him. On Sunday, authorities arrested and charged him with embezzling at the time nearly $19.2 million in funds while working as an assistant Vice President for the Long Island City, Queens offices of Citigroup’s treasury department — where some of the bank’s own investments are managed. The amount has increased to $22 million after a more thorough search of misused funds.

“The defendant allegedly used his knowledge of bank operations to commit the ultimate inside job,” said Brooklyn US Attorney Loretta Lynch, announcing bank-fraud charges against Foster.

The 35 year old Rutger’s graduate had been working for Citigroup for 12 years, according to his Linked In account. But news reports stated ‘But according to investigators, between May 2009 and December 2010, Foster wired millions from internal Citigroup accounts into his personal bank account with Chase. The criminal complaint alleges that Foster tried covering his tracks by assigning fake contract or deal numbers to make the transfers look legitimate, he also had himself assigned as contact person if there were problems.’

Foster bought expense homes and cars and also hired chauffeurs because he is legally blind.

Many other purchases include:

• a Maserati Gran Turismo and a BMW 550i (along with the chaffeur)
• $12 million on properties in Midtown Manhattan and New Jersey where he also bought a house for his parents and paid his ex-wife’s mortgage in full
• $3 million a 10,000 sq. ft 6-bedroom mansion in Englewood Cliffs, NJ
• $1.93 million on a West 48th Street apartment at Rockefeller Center — across from a Citigroup branch. This is in addition to the
• two high rise condos in Jersey City valued together at $2.5 million

Gary Foster received the term Friday in federal court in Brooklyn.

The 35-year-old Foster pleaded guilty last year. Authorities had accused him of secretly transferring money from various Citibank accounts to his personal account at another bank.

Foster also was forced to forfeit property he purchased with his ill-gotten gains. It included real estate in New York and New Jersey, and several luxury cars.

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