FORMER CFO OF WESTPORT HEDGE FUND SENTENCED TO 41 MONTHS IN PRISON FOR EMBEZZLING MORE THAN $1 MILLION
David B. Fein, United States Attorney for the District of Connecticut, announced that DARRIN FOSTER, 46, formerly of the Bronx, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for embezzling 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. On October 16, 2012, he pleaded guilty to one count of wire fraud.
This matter was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Susan Wines.
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