Former CEO of Melrose CU indicted on bribery charges

melrose-cu-e1536066068298.jpgAlan Kaufman, the ex-CEO of the former Melrose CU, was arrested yesterday along with Tony Georgiton, a Long Island businessmen. Both men were charged with bribery of a financial institution officer, according to a press release by the United States District Court for the Southern District of New York.

Kaufman and Georgiton were charged with participating in a scheme in which Kaufman 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 was also charged with accepting lavish vacations, including to Paris and Hawaii, as bribes from a media company, in exchange for the Queens-based credit union purchasing increased advertising with the company.

“As alleged, Alan Kaufman conspired to take bribes from Tony Georgiton in exchange for favorable refinancing of millions of dollars of Melrose CU loans to Georgiton’s companies,” U.S. Attorney Geoffrey S. Berman said in a statement. “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.”

Kaufman is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and two counts of bribery of a financial institution officer, each of which carries a maximum of 30 years in prison.

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