Karen Febles, Bank Fraud, New Jersey 2023

A former Citibank employee has been convicted of stealing more than $1.3 million from Wall Street titan William Salomon, a 98-year-old former managing partner of Salomon Brothers, which was later acquired by Citibank.

According to the U.S. Attorney’s office, Karen Febles, 48, of Wallington, N.J., worked as an executive assistant for Citibank, helping Salomon with his personal and professional finances. She was convicted by a jury of bank fraud, four counts of wire fraud, three counts of money laundering, and two counts of tax evasion.

Febles was found to have taken advantage of her position to loot her employer’s bank accounts of nearly $2 million. By betraying her employer’s trust, Febles financed a luxurious lifestyle she could not otherwise have afforded. The jury verdict ensures she will soon find out the true cost of her choices.

The investigation revealed that between 2007 and September 2011, at least $1.3 million of Mr. Salomon’s funds went from his bank accounts directly into Febles’ 21 bank accounts, including two accounts that she maintained for her minor son. A review of hundreds of checks written by Febles revealed that the checks had been altered by Febles – after they had been signed by Mr. Salomon – to add additional sums of money.

Febles spent hundreds of thousands of dollars on luxury purchases, including a 2011 Range Rover, a Mercedes-Benz, and a four-bedroom home in Mahwah, N.J. She also spent money on vacation and travel expenses, automobile payments, and personal expenses. During this time, Febles never earned more than $50,000 per year in take-home pay from Citibank.

In addition to the evidence of Mr. Salomon’s money going into Febles’ bank accounts and the evidence of Febles’ expenditures, the evidence at trial also established that Febles transferred hundreds of thousands of dollars that she stole from Mr. Salomon from her accounts into custodial bank accounts that she maintained for her minor son.

The case was prosecuted by the U.S. Attorney’s office and investigated by the FBI and IRS-Criminal Investigation. Febles is expected to face sentencing at a later date.

Related Federal Cases