VP OF CITIGROUP EMBEZZLES $22 MILLION AND GETS A SHORT SENTENCE - GARY FOSTER - READ UNSEALED...

8/4/2019 VP OF CITIGROUP EMBEZZLES $22 MILLION AND GETS A SHORT SENTENCE - GARY FOSTER - READ UNSEALED COM

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Case 1:11-cr-00601-ENV Document 1 Filed 06/23/11 Page 1 of 5 PageID #: 1


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BEFORE ERIC N. VITALIANO

UNITED STATES DISTRICT JUDGE

DATE: 9/6/2011

CRIMINAL CAUSE FOR PLEADING

DOCKET # 11cr601 Defendant # 1

CASE: USA v. Gary Foster (bond)

COUNSEL: Isabelle Kirshner

AUSA: Michael Yaeger

Spanish Interpreter: n/a

COURT REPORTER: Michele Nardone

X CASE CALLED FOR PLEADING.

X DEFT SWORN.

X DEFENDANT ENTERS A PLEA OF GUILTY TO COUNT 1 of the information

X COURT FINDS THAT THE PLEA WAS MADE KNOWINGLY &

VOLUNTARILY AND NOT COERCED. COURT FINDS FACTUAL

BASIS FOR THE PLEA & ACCEPTS PLEA OF GUILTY TO

COUNT one of the information.

X SENTENCE DATE: TO BE SET AFTER PROBATION REPORT COMPLETE

Time in Court: 40 minutes



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AO 455 (Rev. 01/09) Waiver of an Indictment

UNITED STATES DISTRICT COURT

United States ofAmericav.

Gary FosterDefendant

for theEastern District of New York

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Case No. 11cr601(ENV)

WAIVER OF AN INDICTMENT

I understand that I have been accused of one or more offenses punishable by imprisonment for more than oneyear. I was advised in open court ofmy rights and the nature of the proposed charges against me.After receiving this advice, I waive my right to prosecution by indictment and consent to prosecution by

information.

Date:

Signature ofdefendant's attorney

_ ! ~ ~ e l l e Kil"hnElrPrinted name of d e f e n d a n t ' ~ attorney

~ " ' l " n . - ( ; ? t : t r K I" . , , . , . -- - ud ssfgnatureEric N. Vitaliano, US-.,O".,J"---__

Judge's print ed name and title


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JM:MLYF.#2011R01068UNITED STATES DISTRICT COURTEASTERN DISTRICT OF NEW YORK

- - XUNITED STATES OF AMERICA

- aga ins t -GARY FOSTER,

Defendant .- - - - - - X

I N F O R M A T I O NCr. No. 1 - 0 l(T . 18, U.S:C. , 981(a) (1 ) (C),1344, 2 and 3551 e t s eq . ; T. 21,U.S.C. , 853 (p) ; T. 28, U.S.C. , 2461)

THE UNITED STATES ATTORNEY CHARGES:INTRODUCTION

Unless s t a t e d otherwise, a t a l l t imes r e levan t to t h i sInformat ion:

Relevant Person and Ent i ty1 . The depos i t s of Ci t igroup, Inc. ("Ci t ig roup")

were insured by the Federa l Deposi t Insurance Corpora t ion .Ci t ig roup was a " f inanc ia l i n s t i t u t i on" as def ined in T i t l e 18,United Sta tes Code, Sect ion 20.

2. The defendan t GARY FOSTER was a v ice pres iden t inCi t ig roup ' s i n t e rna l t r easu ry f inance department who worked intha t depar tment ' s d e r iv a t i v e s u n i t . FOSTER worked out o fCi t ig roup ' s bui ld ing in Long I s l and Ci ty , New York. Theder iva t ives u n i t was respons ib le fo r process ing paymentsr e l a t i n g to t r ades o f der iva t ive ins t ruments such as "swaps."



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..In support of t ha t func t ion , the department processed wiret r ansac t ions between e n t i t i e s .

The Scheme to Defraud3. In o r about and between September 2003 and June

2011, the defendant GARY FOSTER orches t r a ted a scheme to defraudCit igroup by causing Ci t ig roup ' s money to be wired to h is ownpersona l bank account a t JPMorgan Chase, N.A. ("Chase") . As ar e s u l t of FOSTER's f raud, he obtained over $22 mil l ion fromCi t ig roup .

4. To car ry out h is scheme, the defendant GARYFOSTER deducted money from var ious Ci t igroup accounts and addedit to C i t ig roup ' s cash account . FOSTER then wired the moneyfrom Ci t ig roup ' s cash account to h is persona l bank account a tChase.

5. The defendant GARY FOSTER concealed the wiret r a n s fe r s from th e cash account t o h i s pe rsona l bank account bymaking var ious fa l se account ing e n t r i e s t o c rea te the appearancet ha t th e cash account was in balance. FOSTER fu r the r concealedh is act ions by p lac ing a f raudulent co n t r ac t o r dea l number inthe re fe rence l ine of the wire t r a ns f e r i n s t ruc t ions to give theappearance t ha t the wires t o h i s persona l bank account were insuppor t o f an exis t ing Ci t ig roup con t rac t .

2Case 1:11-cr-00601-ENV Document 11 Filed 09/06/11 Page 2 of 4 PageID #: 19


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BMKFAAOO6. In o r about and between September 2003 and June

2011, both da te s being approximate and i n c lu s iv e , within th eEastern D i s t r i c t and elsewhere , the defendan t GARY FOSTER d idknowingly and i n t e n t iona l ly execu te and a t t empt to execute ascheme and a r t i f i c e to defraud Ci t igroup, a f i n a n c i a li n s t i t u t i o n , and to obta in moneys, funds, a s s e t s and o th e rproper ty owned by, and under th e custody and co n t r o l o f ,Cit igroup by means o f mate r i a l l y fa l se and f raudu len t p re t enses ,rep re sen ta t ions and promises .

(T i t l e 18, United Sta tes Code, Sect ions 1344, 2 and3551 e t

CRIMINAL FORFEITURE ALLEGATION7. The United S ta t e s hereby gives no t ice to the

defendant GARY FOSTER t ha t , upon convic t ion o f th e offensea l l eged in t h i s In format ion , th e United Sta tes w i l l seekfo r f e i t u re in accordance with Ti t l e 18, United Sta tes Code,Sect ion 981(a) (1) (C), and Ti t l e 28 United Sta tes Code, Sect ion2461, of any prope r ty cons t i tu t ing o r der ived from proceedsobtained d i r e c t ly o r i nd i r e c t ly as a r e s u l t of such offense ,including bu t not l imi ted to , a sum o f money rep re sen t ing th eamount of g ross proceeds obta ined as a r e s u l t o f t he o f fense .

8. I f any of the above-descr ibed fo r f e i t a b l eproper ty , as a r e s u l t of any a c t o r omiss ion o f th e defendan t :



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a . cannot be loca ted upon th e exerc i se of dued i l igence ;

b. has been t r a n s fe r r e d o r sold to , o rdeposi t ed with, a t h i rd par ty ;

c . has been placed beyond th e j u r i sd i c t i on ofthe cour t ;

d. has been s ubs t a n t i a l l y diminished in value;or

e . has been commingled with o t h e r proper tywhich cannot be divided without d i f f i c u l t y ;it i s the i n t e n t of th e United Sta tes , pursuan t to Ti t l e 21,United Sta tes Code, Sect ion 853(p), to seek fo r f e i t u r e of anyo ther proper ty of the defendant up to th e value o f thefor fe i tab le proper ty descr ibed in t h i s fo r fe i t u re a l l e g a t i o n .

(Ti t le 18, United Sta tes Code, Sect ion 981(a) (1) (C);Ti t l e 21, United Sta tes Code, Sect ion 853(p) ; Ti t l e 28, UnitedSta tes Code, Sect ion 2461)

LORETTA E. LYNCHUNITED STATES ATTORNEYEASTERN DISTRICT OF NEW YORK

B Y g ~ ~ t S ~ ~ ~ ACTING UNITED STATES ATTOPURSUANT TO 28 C.F.R. 0.13



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VP OF CITIGROUP EMBEZZLES $22 MILLION AND GETS A SHORT SENTENCE - GARY FOSTER - READ UNSEALED...

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