NEW YORK -- The former head of Citibank's worldwide commodities trading activity pleaded guilty Tuesday to conspiracy in a scheme the government says was aimed at inflating trading profits and boosting his eligibility for bonuses.
David Becker, 40, of Great Neck, pleaded guilty in U.S. District Court in Manhattan to conspiracy to falsify bank records and to commit wire fraud. Judge Alvin K. Hellerstein set sentencing for Jan. 26, when Becker could face up to five years in prison.
Becker was charged in a scheme to inflate the trading profits of the Citibank commodities desk by as much as $20 million during 2003.
Federal prosecutors said he wanted to enhance his job performance and his eligibility for bonuses from Citibank.
The government alleged that Becker headed Citibank's worldwide commodities trading activity when he conspired with the head of American commodities trading and sales to overstate the financial performance and understate the market risk of Citibank's commodities desk during 2003.
Becker told Hellerstein that his wrongdoing on $5 million in trades alone generated an extra $1 million in profits on the company's books.
The judge asked him if the appearance of enhanced performance increased the amount of money he was eligible for in bonuses; Becker said that it did.
Prosecutors said Becker essentially doctored the books, manipulating data in the computer so it appeared that profits were higher by millions of dollars than they actually were.
The government said Becker and his co-conspirator, whose identity it didn't reveal, also caused false information to be reported to the Citibank financial control department, which was responsible for monitoring the commodities desk.
Danielle Romero-Apsilos, a Citibank spokeswoman, said the company fired Becker after an internal investigation, the results of which were immediately referred to authorities, who began a criminal inquiry.
``Citigroup fully cooperated with the authorities and is committed to upholding the highest standards of integrity,'' she said.
E-Mail Story
Print Story
