Former Citigroup executive charged with embezzlement

NEW YORK (AP) - A former executive of Citigroup Global Markets Inc. was indicted on charges he embezzled more than $70,000 from two mutual funds he controlled. 

Irving David, 41, of New York, stole $72,870 in checks that were to be deposited into the funds and instead put nearly $48,000 into his own personal bank account, according to a 16-count indictment announced Thursday by the Manhattan's U.S. attorney's office. 

David served as the controller, treasurer and chief financial officer of the Consulting Group Capital Markets Funds, and as the controller of the Smith Barney World Funds Inc. He was fired from the Citigroup Inc. unit in January. 

David was arrested earlier Thursday and expected to be arraigned in Manhattan federal court. His attorney couldn't immediately be located. 

David is charged with stealing the checks between November 2000 and January 2003.  

Some of the checks had been issued to fund shareholders in connection with the settlement of class-action lawsuits, prosecutors said. 

Mary Athridge, a spokeswoman for Citigroup Asset Management, said the company immediately notified authorities when it discovered the misconduct and continues to cooperate fully with law enforcement. 

In addition, "any affected mutual fund has been reimbursed in full,'' she said. 

David faces up to 30 years in prison and a $1 million fine on each of 15 counts of mail fraud, and up to five years in prison and a $10,000 fine on one count of embezzlement. - AP 

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