A former vice president of Citigroup has been arrested on bank fraud charges after he allegedly embezzled more than $19 million from the bank, US prosecutors said on Monday. Gary Foster, 35, was detained at New York's John F. Kennedy International Airport on Sunday after he arrived on a flight from Bangkok, the US Department of Justice (DoJ) said in a statement.
Foster, who worked in Citigroup's treasury finance department, is accused of transferring millions of dollars from various internal corporate accounts to his own private account at another bank. He attempted to cover up his activities, which took place between July and December 2010, with a "fraudulent contract" that made the transfers appear legitimate, the DoJ said.
"The defendant allegedly used his knowledge of bank operations to commit the ultimate inside job," US Attorney Loretta Lynch said. Citigroup alerted prosecutors and the Federal Bureau of Investigation to the embezzlement, the DoJ statement said. If convicted on the bank fraud charges, Foster faces up to 30 years in prison. New York-based Citigroup is the United States' fourth-largest bank in terms of deposits. It has operations in more than 100 countries around the world.
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