Ex-Park Avenue Bank Chief Antonucci Accused of Fraud

March 15, 2010 by · Leave a Comment
Filed under: Legal News 

Glad to see we are hearing about fraud in the TARP program.  We put a massive amount of money go into many financial institutions and if history proves to repeat itself, fraud always happens in large government programs.  The alleged transaction sounds very fishy and should be investigated.

Business Week – Charles Antonucci, the ex-president of the Park Avenue Bank in Manhattan, closed by regulators last week, was arrested and charged with lying in an application for federal bailout funds and scheming to gain control of the bank.

U.S. Attorney Preet Bharara in Manhattan will hold a press conference today on the filing of charges against Antonucci, who was also chief executive officer of the bank, Bharara said in a statement. Charges include bank fraud, embezzlement, wire fraud and bribery, the prosecutor said.

Antonucci lied to the Treasury Department about Park Avenue’s capital as part of the bank’s application for an $11.2 million investment from the U.S. Troubled Asset Relief Program, according to a federal court complaint.

The banker schemed to gain control of the bank and defrauded the Federal Deposit Insurance Corp. by claiming he personally invested $6.5 million to provide additional capital to the bank, when he had actually “devised an elaborate round- trip loan transaction so that the purported $6.5 million investment was actually made with the bank’s own funds,” the complaint says.

Click Here to Continue Reading

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!