| 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)
***
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