Former Westport Hedge Fund CFO Sentenced to 41 Months in Prison for Embezzlement

Darrin Foster, the former CFO of a Westport-based hedge fund, was sentenced on Thursday by U.S. 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 employer, according to a release by David B. Fein, U.S. Attorney for the District of Connecticut.

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, according to court documents and statements made in court.

From approximately September 2004 to July 2010, Foster made thousands of unauthorized charges for personal expenses on his employer’s American Express account, according to the release. He then arranged for telephonic payments of his unauthorized charges to be made from the hedge fund’s bank accounts totaling more than $1 million.

Foster was arrested in Yonkers in May 2012 and pleaded guilty to wire fraud in Oct. 2012.

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