The former chief executive of The Park Avenue Bank in New York, which was closed by regulators on Friday, was arrested Monday, according to media reports. Charles Antonucci Sr., who resigned last year, was taken into custody and charged with fraud on the Federal Deposit Insurance Corp., making false statements on a TARP application, and making a counterfeit certificate of deposit among other charges, the reports said. Park Avenue Bank is the 28th bank failure of this year.
According to Business Week Magazine, and Bloomberg News, 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, the complaint says. He is also accused of defrauding the Federal Deposit Insurance Corp. by claiming he invested $6.5 million of his own money 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.”
(Source: MaketWatch / Business Week / Bloomberg.com)
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4 Responses
you mean bank fraud is ILLEGAL????
Now, that’s a hiddush.
P.S. Do you think lower Manhattan might turn into a ghost town?
lol #1. Making false statements on an application is illegal? Forget about lower Manhattan…..you can add ______________(just fill in the blanks).
No, don’t worry, is businesses want to succeed then they will regulate themselves and only engage in appropriate business practices!
Is this at all related to Liberty Pointe Bank? Didn’t they close on Firiday as well?