Ilya Marritz
Ilya Marritz covers business for WNYC.
Former Head of Local Bank Charged in Bailout Fraud
Tuesday, March 16, 2010
New York, NY –
A small New York City bank that was shut down last Friday is in the headlines again. This time for attempting to defraud the taxpayers. WNYC's Ilya Marritz has details.
REPORTER: Prosecutors say in 2008 the then CEO of Park Avenue Bank made false statements on the bank's application for the TARP, or Troubled Asset Relief Program. They say Charles Antonucci tried to make the bank's balance sheet look healthier than it really was by buying bank stock with $6.5 million of his own money.
Only trouble is prosecutors say he didn't spend a dime - the money allegedly came from the bank itself and they say Antonucci covered his tracks with a variety of deceptions. It's the first time charges have been brought over the $700 billion taxpayer bailout for banks.
Antonucci's lawyer says he is studying the charges. The former CEO is free on $2 million bail.
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