Former CEO Of Melrose Credit Union And Long Island Businessman Charged With Bribery Scheme In

[TexasTowelie]

Former CEO Of Melrose Credit Union And Long Island Businessman Charged With Bribery Scheme In Manhattan Federal Court


Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that ALAN KAUFMAN and TONY GEORGITON were arrested today and charged with bribery of a financial institution officer. KAUFMAN and GEORGITON were charged with participating in a scheme in which KAUFMAN, who was then the chief executive officer of Melrose Credit Union (“Melrose CU”), accepted free housing and financing for the purchase of his personal residence from GEORGITON in exchange for the approval of millions of dollars in loans to GEORGITON’s companies at favorable terms. KAUFMAN is also charged with accepting lavish vacations, including to Paris and Hawaii, as bribes from a media company, in exchange for Melrose CU purchasing increased advertising with that company. The defendants are expected to be presented this afternoon before U.S. Magistrate Judge Henry B. Pitman. The case is assigned to U.S. District Judge Lewis A. Kaplan.

U.S. Attorney Geoffrey S. Berman said: “As alleged, Alan Kaufman conspired to take bribes from Tony Georgiton in exchange for favorable refinancing of millions of dollars of Melrose Credit Union loans to Georgiton’s companies. In addition, Kaufman is alleged to have accepted Paris and Hawaii vacations in exchange for directing increased advertising payments to a media company. Now, both Kaufman and Georgiton face criminal charges for their alleged self-dealing.”

FBI Assistant Director William F. Sweeney Jr. said: “Lavish vacations, rent-free housing, and even naming rights to a ballroom were among the high-ticket items Kaufman received in this alleged scheme. All of this was made possible through a series of illegal business dealings negotiated with Georgiton and a New York City-based media company – both of whom independently sought financial benefits of their own from Melrose Credit Union, where Kaufman served as chief executive officer. Today’s charges highlight a series of fraudulent behaviors that raised red flags along the way. The FBI will continue to be a major force in confronting those who think they can evade the law in order to make an easy profit.”

According to the Indictment[1] unsealed today in Manhattan federal court:

In 2010, GEORGITON purchased a home in Jericho, New York (the “Jericho Residence”), and permitted KAUFMAN to live in that home rent-free for over two years. While KAUFMAN was living rent-free at the Jericho Residence, KAUFMAN personally approved the refinancing of over $60 million worth of loans at Melrose CU held by a company owned by GEORGITON with favorable terms. The head of Melrose CU’s loan department refused to sign off on the loans given to GEORGITON because, among other things, he believed that the terms were too favorable and did not comply with Melrose CU’s loan policy.

Read more: https://www.justice.gov/usao-sdny/pr/former-ceo-melrose-credit-union-and-long-island-businessman-charged-bribery-scheme