Citigroup ex-VP arrested upon arriving at NYC airport, is accused of $19.2M embe

June 27, 2011

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Citigroup ex-VP arrested upon arriving at NYC airport, is accused of $19.2M

embezzlement

By Tom Hays, The Associated Press | The Canadian Press – 53 minutes ago

NEW YORK, N.Y. - A former Citigroup vice-president embezzled $19.2 million from

the bank in a one-man " inside job " involving a series of secret money transfers,

federal prosecutors said Monday.

, 35, a New Jersey resident, surrendered Sunday at F. Kennedy

International Airport after arriving on a flight from Bangkok. He was released

Monday on $800,000 bond after appearing in federal court in Brooklyn to face

bank fraud charges carrying a maximum penalty of 30 years in prison.

had been travelling in Southeast Asia when he received word of the case,

defence attorney Isabelle Kirshner said after the court appearance.

" As soon as he became aware they were looking for him, he voluntarily contacted

the FBI and arranged to return, " Kirshner said.

Officials at Citigroup Inc. — where was vice-president of the treasury

finance department until quitting in January — said in a statement that they

were " outraged by the actions of this former employee " and hoped to see him

" prosecuted to the full extent of the law. "

" used his knowledge of bank operations to commit the ultimate inside

job, " U.S. Attorney Loretta Lynch said in a statement.

According to a criminal complaint, 's department financed loans and

processed wire transfers within Citigroup. From May 2009 through the end of last

year, siphoned funds from various Citigroup accounts, placed them in the

bank's cash account and then wired the money into his private account at another

bank in New York, the complaint alleged.

In one November 2010 transaction, wired $3.9 million from a Citigroup

fund in Baltimore to his New York account, the complaint says. That fraudulent

transfer and seven others went undetected until a recent internal audit, it

said.

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