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Former CFO of Westport Hedge Fund Pleads Guilty to $1 Million Embezzlement Scheme

The former CFO faces a maximum of 20 years in prison.

 

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 a news release from Tom Carson of the U.S. Department of Justice Public Information Office.

According to court documents and statements made in court, Foster worked as the Chief Financial Officer for a hedge fund based in Westport. 

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"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," Carson said. "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, Carson said. 

Through this scheme, Foster made a total of $1,093,856 in unauthorized personal charges, according to Carson.

Foster was arrested by the New York State Police in Yonkers on May 27, 2012.  He was released on June 7 on a $500,000 bond.

Judge Arterton has scheduled sentencing for January 7, 2013, at which time Foster faces a maximum term of imprisonment of 20 years, Carson said. 

This matter is being investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Susan Wines.

 

Editor's note: This story originally stated the defendant was incarcerated since his arrest on May 27. He was released on June 7 on a $500,000 bond.

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