North Carolina Man Who Embezzled $306,000 From St. Louis County Company Admits Defrauding Second Employer

Source: US FBI

ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Thursday sentenced a man who embezzled a total of $501,000 from two companies to 30 months in prison and ordered him to repay the money.

Judge Pitlyk ordered Scott H. Foster, 49, of Charlotte, North Carolina to repay $306,199 to the St. Louis County company where he worked as a mid-level executive in human resources. Foster pleaded guilty in February to one count of wire fraud and admitted manipulating the human resources systems to create an employee account for his paramour. Foster triggered wages and benefits totaling more than $273,000 to be paid to his paramour over nearly five years, until Foster was terminated in December 2022. He also used a corporate American Express card to pay for more than $33,000 in personal travel for himself, his paramour and other friends and acquaintances.

“Rather than learn from his crimes,” a sentencing memo filed by Assistant U.S. Attorney Jonathan Clow says, Foster’s conduct became “more manipulative and egregious.”

After Foster’s guilty plea, the U.S. Attorney’s Office was contacted by a non-profit children’s hospital where Foster had been working since June 2023. After learning about the guilty plea, they investigated and discovered Foster had fraudulently used hospital credit cards for unauthorized personal expenses and travel, the memo says. Foster, who had received a $20,000 relocation bonus to move to the hospital’s area after being hired, instead stayed in Charlotte and used hospital credit cards to pay for airfare and lodging to commute to his job. He also used these credit cards for personal travel, and to pay for first-class air travel to St. Louis and a hotel stay when he pleaded guilty in February. Foster’s embezzlement from the hospital did not stop even after he learned he was being investigated for the embezzlement from his first employer. Judge Pitlyk on Thursday ordered Foster to pay $194,855 to the hospital.

“Scott Foster absolutely belongs in prison—not just to answer for stealing from two different employers, but to stop him from preying on another one,” said Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “After being fired from his first company and before he could be charged, Foster took a job at a children’s hospital—where he stole again. Employee theft is one of the most common white-collar crimes the FBI investigates, and it destroys trust from the inside. Businesses must protect themselves with strict internal controls, routine audits, and a clear line of sight on every dollar. “

The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.