Inner City Press





In Other Media-eg New Statesman, AJE, FP, Georgia, NYTAzerbaijan, CSM Click here to contact us     .



These reports are usually available through Google News and on Lexis-Nexis
,



Share |   

Follow on TWITTER

Home -

These reports are usually available through Google News and on Lexis-Nexis

CONTRIBUTE

(FP Twitterati 100, 2013)

ICP on YouTube

More: InnerCityPro

BloggingHeads.tv
Sept 24, 2013

UN: Sri Lanka

VoA: NYCLU

FOIA Finds  

Google, Asked at UN About Censorship, Moved to Censor the Questioner, Sources Say, Blaming UN - Update - Editorial

Support this work by buying this book

Click on cover for secure site orders

also includes "Toxic Credit in the Global Inner City"
 

 

 


Community
Reinvestment

Bank Beat

Freedom of Information
 

How to Contact Us



Melrose Credit Union CEO Kaufman Convicted in SDNY Trial After Georgiton Got 9 Months at Home

By Matthew Russell Lee, Video, Alamy photos

SDNY COURTHOUSE, March 31 – The CEO of Melrose Credit Union Alan Kaufman was arrested at 6 am on July 11, 2019 and presented on bribery charges before U.S. District Court for the Southern District of New York Magistrate Judge Henry B. Pitman at 4 pm. Wearing a red polo shirt, he pleaded not guilty.  Inner City Press was there and reported it.

 He agreed to a bail package of a $500,00 bond to be signed by his wife and his son, flying in on July 23 and, among other things, drug testing and treatment if needed. His co-defendant Tony Georgiton must post a $1 million bond and turn in not only his US but also his Greek passport. The next hearing was not until September 4 before SDNY District Judge Lewis A. Kaplan. Inner City Press wrote: It's good to be a banker.

On January 11, 2021, Georgiton had his sentencing, and Inner City Press live tweeted it, below.

Now on March 31, Kaufman has been convicted after a jury trial "for participating in a scheme in which KAUFMAN, who was then the Chief Executive Officer of Melrose Credit Union (“Melrose CU”), accepted rent-free housing and financing for the purchase of his personal residence from Tony Georgiton as a reward for the approval of millions of dollars in loans to Georgiton’s companies at favorable terms.  KAUFMAN was also convicted for accepting lavish vacations, including to Paris and Hawaii, from a media company and other vendors, as a reward  for Melrose CU purchasing increased advertising from those companies.  The jury convicted KAUFMAN today following a two-week trial before U.S. District Judge Lewis A. Kaplan.  Georgiton pleaded guilty before Judge Kaplan on September 9, 2020."

now  @SDNYLIVE  the sentencing of Tony Georgiton, who bribed Melrose Credit Union CeO Alan Kaufman for refinancing of $60 million in loans including the Melrose Ballroom in Astoria, Queens.

Georgiton's lawyer: There was no quo for the quid. I take my hat off to Mr. Kreiger, he did the research and now there is no remand for restitution, beyond the amount of the actual bribe.

Georgiton's lawyer: They went to Alma Bank and got a loan at a lower rate... In jail right now, the Bureau of Prison is just keeping people locked in a cage.  [From his memo: "When Tony needed financial for his first [taxi] medallion, the broker sent him to MCU."

 Georgiton himself: "I am a good man with a big heart. I have worked hard. I help people, 1000s of drivers in my community. Anyone who came knocking on my door, I help them. I never gave too much emphasis in money. I was born in Greece...

Georgiton: I am going to be 63. I cannot hold any licenses. I cannot sell my house. My partners threw me out of the company [sobbing]. I don't know how I can get out from this. I breaks my heart. This is not what I had in mind when I came to the US.

Assistant US Attorney: Probation is not a sufficient punishment. We have concerns about the acceptance of responsibility. This was the head of a multi million dollar taxi medallion business who paid bribes to the CEO of a billion dollar credit union

AUSA: We are asking for forfeiture of $286,000.

Defense lawyer: May I respond? The rent-free aspect, yes, Mr. Kaufman did not pay rent. But he paid $2000 a month in expenses.

 Judge Kaplan: I understand you have done good things your life. I don't question any of it. But these was not a mistake, nor an error of judgment. It was a longstanding course of conduct that was corrupt, at its heart.

 Judge Kaplan: I sentence you to probation of three years, a fine of $95,000 and forfeit to the US the sum of $286,663.65.

Judge Kaplan: Nine months of the 3 years of probation will be at home, leaving only for medical appointments [and the like]. No drug testing condition. Anything else?

Defense: I want to thank the court. Georgiton: Can I take my wife to the doctor? Judge: Yes.

AUSA has dropped off the line, but he was on when the sentence was announced. Judge Kaplan: we are adjourned.

The case is US v. Georgiton, 19-cr-504 (Kaplan)

***

Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

Feedback: Editorial [at] innercitypress.com

Box 20047, Dag Hammarskjold Station NY NY 10017

Reporter's mobile (and weekends): 718-716-3540



Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.

 Copyright 2006-2021 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] innercitypress.com for