Former CFO of Westport hedge fund gets 41 months in prison
Updated 6:49 pm, Thursday, March 14, 2013
The former chief executive officer of a Westport hedge fund was sentenced Thursday to 41 months in prison for embezzling more than $1 million.
Darrin Foster, 46, a former resident of the Bronx, N.Y., in addition to imprisonment, faces three years of supervised release under the sentencing by U.S. District Judge Janet Bond Arterton in New Haven federal court.
Foster had access to the fund's bank accounts and was authorized to make business-related charges on the corporate American Express card, according to David Fein, the U.S. attorney for Connecticut. He was also expected to pay the credit-card bills.
However, according to Fein, from about September 2004 to July 2010, Foster made thousands of unauthorized charges for personal expenses on the employer's American Express account. He then arranged for payments of his unauthorized charges to be made from the hedge fund's bank accounts.
Through the scheme, Foster made a total of $1,093,856.20 in unauthorized personal charges, Fein said in a press release.
Foster was arrested by the New York State Police in Yonkers, N.Y., last May 27. He pleaded guilty to one count of wire fraud last Oct. 16.