Two Pa. men diverted bank loan fees, says indictment

Two Pennsylvania men have been indicted by a federal grand jury on charges of operating a scheme to steal $2.9 million from a Delaware division of Citigroup. The indictment was handed up Dec. 10 but not unsealed by federal prosecutors until Monday. According to prosecutors, Keith Singleton, 41, of Schwenksville, Pa., and Eugene Watson, 30, of Philadelphia worked with an unnamed co-conspirator employed by Citigroup's loan operations department in New Castle. The job of the co-conspirator at Citigroup -- who has been separately indicted under seal and identified by prosecutors as a woman named "C.S." -- was to make sure that third parties were paid their proper fees from loan payments. C.S. joined Citigroup in 2005 and left in June 2007, according to court papers. Posted in: Internal Fraud