Citigroup exec admits to $22.9 million bank fraud

Citigroup exec admits to $22.9 million bank fraud

A former Citigroup treasurer accused of stealing $22.9 million from the bank has pleaded guilty to fraud at a court hearing in New York.

Gary Foster, a former vice president in Citigroup's treasury finance department was arrested in New York in June after returning from a flight out of Bangkok.

In an extended eight-year swindle, Foster transferred money from various accounts to Citigroup's cash account and then to his personal account at a different bank in eight separate wire transfers. Foster used bogus derivatives deal numbers to create the appearance that the transfers were in support of an existing contract.

The illegal transfers were spotted during an internal audit and the evidence handed over to the FBI.

Initially pleading innocent to the charges, Foster admitted the scam at a hearing in New York. As part of his plea deal, he has agreed to forfeit about $16 million in properties, including residences in Manhattan, Brooklyn and New Jersey, as well as a Ferrari and a Maserati and bank accounts

He faces a maximum sentence of ten years in prison.

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