Saturday, July 2, 2011

$19 Million Embezzled from CitiGroup by VP with Excessive Access Rights

A former Citigroup vice president in the internal finance department is charged with embezzling over $19 million.

Between July and December of 2010 the defendant allegedly transferred money between numerous Citigroup corporate accounts and his personal account at JPMorgan Chase.
"The defendant allegedly used his knowledge of bank operations to commit the ultimate inside job." - Loretta E. Lynch, US Attorney, Eastern District, New York
The former VP appears to have accrued excessive access rights to sensitive banking systems so he could both authorize and initiate eight large transfers of cash. Excessive access may also explain how he could associate fraudulent contracts and deal numbers with the wire transfers and make them appear to be for existing contracts.

According to the complaint, Citigroup only discovered the fraud many months after it occurred as part of an internal audit of the department.
In the time between the crime and its discovery the defendant allegedly used some of the money to purchase a Maserati, a BMW, and six properties, including a home with a half-million-dollar entertainment system.
For other insider frauds see: Insider Steals $11 Million Despite Separation Duties Controls

Sources:
(a) Former Citigroup Vice President Charged With Bank Fraud For Embezzling More Than $19 Million - US Attorney's Office, Eastern District of New York, June 27, 2011
(a) US Attorney's Office Complaint - US Attorney's Office, Eastern District of New York, June 27, 2011
(a) Arrest in Alleged Citi Fraud Former Employee Charged with Embezzling $19 Million; 'Ultimate Inside Job' - Wall Street Journal, June 28, 2011


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