Yesterday, the U.S. Attorney's office charged the former president of Park Avenue Bank with 10 counts including fraud, embezzlement and bribery in a scheme to pass off millions in TARP funds as his own. Manhattan U.S. Attorney Preet Bharara said, "[Charles] Antonucci is the first person ever to be charged with attempting to defraud the TARP and we expect he will not be the last."
The 59-year-old said he invested $6.5 million of his own money in the bank to help save it back in 2008. But, the NY Times reports the authorities say "Antonucci actually made the investment with the bank’s money. He secretly routed it through a group of entities he controlled, and then used it to buy a majority control of the bank, as if the money were from outside investors. This allowed him to make the bank appear stronger than it really was, essentially double-counting the money, in an application for more than $11 million from TARP, or the Troubled Asset Relief Program."
Prosecutors also say that Antonucci approved $8.5 million in overdrafts to Kentucky companies that funneled Antonucci's fake investment money. According to the Post, "As part of his deal with the Kentucky companies, Antonucci -- who made $250,000 a year -- was allowed to use their owner's private plane on at least 10 separate occasions, Antonucci's former administrative assistant told investigators The free flights included trips to the 2008 Super Bowl in Phoenix and the 2008 Masters golf tournament in Augusta, Ga., along with excursions to Florida and Panama."
Antonucci is free on $2 million bail.
