Apparently Gary Foster “used his knowledge of bank operations” to get the job done.

Foster, according to the U.S. Attorney’s Office in New York, is being charged with embezzling more than $19 million from Citigroup. He was arrested Sunday morning at JFK Airport when he arrived on a flight from Bangkok, the U.S. Attorney’s Office said in a news release.

According to a court case against him, Foster is charged with transferring money from Citigroup accounts into a cash account and then he wired the money into his personal account at another bank. Foster caused an incorrect contract or deal number to be placed in the wire transfer instructions to hide his activities, the DOJ said.

Let this be a lesson to those considering taking a page from Foster (or brother from another mother Jim Glover)’s playabook- attention to detail counts!

Update: from the complaint:

Mr. Foster, who supervised a derivatives unit, was based in the bank’s office tower in Long Island City. He worked in the internal treasury finance department, which funds loans and other business transactions inside Citigroup.

In a series of eight transfers, between July and December 2010, about $900,000 of the money he allegedly took came from the bank’s interest expense account, while an additional $14.3 million came from its debt adjustment account, the complaint said. The transactions went unnoticed until a recent audit, a Citigroup investigator told the Federal Bureau of Investigation, the complaint says. In one transfer cited by the authorities, he allegedly wired himself $3.9 million on Nov. 8, 2010. Mr. Foster allegedly put phony contract or deal numbers in the reference lines for his wire transfers to make them look like they were for legitimate contracts.

Former Citigroup Official Arrested for Bank Fraud [Deal Journal]
Former Citi Exec Charged In $19 Million Theft [WSJ]

Comments (96)

  1. Posted by Dr. Rosenrose | June 27, 2011 at 4:43 PM

    Alright so when the sub routine compounds the interest it uses all these
    extra decimal places that just get rounded off. So we simplified the
    whole thing, we rounded them all down, and dropped the remainder… into an
    account we opened. 

  2. Posted by Guy who smells something fishy | June 27, 2011 at 4:45 PM

    CITI had $19MM? Thats the real story here!

  3. Posted by Citi Operations Director | June 27, 2011 at 4:55 PM

    What’s a wire transfer?

  4. Posted by Roblon000 | June 27, 2011 at 4:57 PM

    JOANNA
    So you’re stealing.

    PETER
    Ah, no. No. You don’t understand. It’s, uh, very complicated. It’s, uh,
    it’s, it’s aggregate so I’m talking about fractions of a cent that, uh,
    over time, they add up to a lot.

    JOANNA
    Ok. So you’re gonna make a lot of money, right?

    PETER
    Yeah.

    JOANNA
    Ok. That’s not yours?

    PETER
    Well, it, it becomes ours.

    JOANNA
    How’s that not stealing?

    PETER
    I don’t think, I don’t think I’m explaining this very well. Um, this
    Seven Eleven, right? If you take a penny from the tray -

    JOANNA
    From the crippled children?!

    PETER
    No, that’s the tray. I’m talking about the tray. The penny’s for
    everybody.

    JOANNA
    Oh, for everybody. Ok.

    PETER
    Yeah, well, those are whole pennies.

    JOANNA
    Yeah.

    PETER
    Right. I’m just talking about fractions of a penny here, but we do it
    from a much bigger tray. A couple of million times. So what’s wrong
    with that?

    JOANNA
    It seems wrong.

    PETER
    It’s not wrong. Initech is wrong. CITIGROUP is an evil corporation, all
    right? Chotchkie’s is wrong. Doesn’t it bother you that you have to get
    up in the morning and put on pieces of flair?

    JOANNA
    Yeah, but I’m not about to go in and start taking money from the
    register!

    PETER
    You know, the Nazis had pieces of flair but they made the Jews wear
    them.

    JOANNA
    What?!

    PETER
    Look, we don’t – I, I – we don’t have to talk about this. Let’s just go
    to the barbecue, all right?

    JOANNA
    Ok.

  5. Posted by Bank of America | June 27, 2011 at 5:00 PM

    (Nervous laughter)

  6. Posted by Seriously | June 27, 2011 at 5:03 PM

    TL;DR

  7. Posted by Soi Cowboy | June 27, 2011 at 5:08 PM

    Coming back from Bangkok??? Did he forget his ATM card at home?

  8. Posted by Guesty | June 27, 2011 at 5:19 PM

    Wait – he MADE 19 million? Where the hell have we been hiding this guy?

    - Vik

  9. Posted by CitiNeverSleeps | June 27, 2011 at 5:33 PM

    Thinking they ought to be arresting Chuck “Musical Chairs” Prince who cost the bank a lot more. Might as well throw in Pandit, too, for his fund’s performance post acquisition. 

  10. Posted by Lawrence | June 27, 2011 at 5:54 PM

    Hey Peter man!  Check our Channel 9!  Check out this chick!

  11. Posted by in love with pmco avatar | June 27, 2011 at 6:00 PM

    i was only doing what Sandy asked me to do, this way it would be a black mark against Chuck

  12. Posted by ExtraOrdinaryPopularDelusions | June 27, 2011 at 6:10 PM

    PC LOAD LETTER. WTF DOES THAT MEAN?!

  13. Posted by Tim Geithner | June 27, 2011 at 6:26 PM

    Does he have to pay income tax on the full amount? 

  14. Posted by Basic Internal Controls | June 27, 2011 at 6:34 PM

    So how does he have the authority to wire money from any account at Citi to his personal account at another bank? Even with a bogus deal number, this seems pretty prosaic. What if someone smart attempted to steal money. Would they ever get caught?

  15. Posted by Walter S. | June 27, 2011 at 6:48 PM

    shut the FUCK up Donny

  16. Posted by Patrick Bateman | June 27, 2011 at 6:57 PM

    140 characters or less please

  17. Posted by Guest | June 27, 2011 at 8:24 PM

    19 million? Tier 1 wiped out .

  18. Posted by Guest | June 27, 2011 at 8:33 PM

    Someone smart would have to take a job at a Citi before anyone has to worry about that.

  19. Posted by Finn Alexander | June 28, 2011 at 2:04 AM

    DB is putting up old news. I saw this guy’s arrest in Hangover 2 after he survived a drug overdose. 

  20. Posted by Finn Alexander | June 28, 2011 at 2:04 AM

    DB is putting up old news. I saw this guy’s arrest in Hangover 2 after he survived a drug overdose. 

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