By Matthew Russell Lee, Video, Alamy photos
SDNY COURTHOUSE, Jan 11 – 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.
Now on January 11, 2021, Georgiton had his sentencing, and Inner City Press live tweeted it here:
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.
