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Ex-Citigroup VP Admits to Embezzling $22M

September 7, 2011
Former Citigroup vice president Gary Foster pleaded guilty yesterday to 1 count of bank fraud.  He was charged with embezzling more than $22 million from Citigroup.  He quit as VP of Citi's treasury finance department in January. Between 2003 and 2010 Foster carried out a scheme in which he siphoned funds from Citi accounts into a personal account at JPMorgan.  He used the funds on homes in Manhattan, Brooklyn and New Jersey, along with luxury cars and other personal expenses. Assistant U.S. Attorney Michael Yaeger said the government planned to recommend a prison sentence of 8 to 10 years, which is lower than the maximum of 30 years - a part of Foster's plea agreement.  The government also recommended that Foster forfeit $16 million worth of properties and cars.  He also faces up to $44 million in fines.  No date has been set for his sentencing.  [Dow Jones Newswires, 9/6/11]