FORMER CFO OF WESTPORT HEDGE FUND
GUILTY TO $1 MILLION EMBEZZLEMENT SCHEME
David B. Fein, United States Attorney for the District of Connecticut, announced that DARRIN FOSTER, 46, formerly of the Bronx, N.Y., pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of wire fraud stemming from his embezzlement of more than $1 million from his Connecticut employer.
According to court documents and statements made in court, FOSTER worked as the Chief Financial Officer for a hedge fund based in Westport. As CFO, FOSTER had access to his employer’s bank accounts, was authorized to make business-related charges on the corporate American Express card and was entrusted to pay the American Express bill. From approximately September 2004 to July 2010, FOSTER made thousands of unauthorized charges for personal expenses on his employer’s American Express account. He then arranged for telephonic payments of his unauthorized charges to be made from the hedge fund’s bank accounts.
Through this scheme, FOSTER made a total of $1,093,856.20 in unauthorized personal charges.
FOSTER was arrested by the New York State Police in Yonkers on May 27, 2012. He has been released on a $500,000 bond under electronic monitoring since June 7, 2012.
Judge Arterton has scheduled sentencing for January 7, 2013, at which time FOSTER faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Susan Wines.
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