Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Feds arrest their first bank bailout fraud suspect

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Federal authorities on Monday charged the former chief executive of a New York bank with being the first suspect to try and rip off taxpayer funds from the Troubled Asset Relief Program.

The U.S. Attorney's office for the Southern District in Manhattan said it arrested Charles Antonucci, former CEO of The Park Avenue Bank, with self-dealing, bank bribery, embezzlement of bank funds and fraud, among other charges.

Antonucci is accused of trying to defraud the TARP program of more than $11 million in taxpayer money, according to the U.S. Attorney's office.

Also, during his time as bank executive, Antonucci allegedly authorized credit extensions and overdrafts to "customers with whom he had financial relationships," in one case extending credit "in exchange for the use of the customer's private plane," according to documents from the U.S. Attorney's office.

In addition, he used the bank to defraud Florida pastors out of more than $100,000 that had been earmarked to build a new church, prosecutors said.

Antonucci was arrested Monday at his home in Fishkill, N.Y. and is expected to appear in court Monday. Prosecutors say he used a company he owned called Easy Wealth Group to mask some of the fraudulent transactions.

Regulators seized The Park Avenue Bank over the weekend.

Antonucci's attorney, Charles Stillman, told CNNMoney.com: "We just learned of these charges today, are studying them and therefore have no comment." To top of page

Index Last Change % Change
Dow 18,094.83 -166.62 -0.91%
Nasdaq 5,257.49 -48.26 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
Treasuries 1.59 -0.03 -1.61%
Data as of 3:44am ET
Company Price Change % Change
Bank of America Corp... 15.09 -0.43 -2.77%
Procter & Gamble Co 87.85 0.09 0.10%
Wells Fargo & Co 44.88 -0.86 -1.88%
Apple Inc 112.88 0.17 0.15%
Pfizer Inc 33.64 -0.62 -1.81%
Data as of Sep 26
Sponsors

Sections

Wells Fargo shares closed below $45 on Monday for the first time since early 2014, the latest sign that the fake account scandal is causing real financial damage. More

A new analysis estimates that under Trump's tax plan, roughly 20% of households with children and more than half of single parents would pay more in taxes than they do today. More

Two years before the government pulled the plug on its funding, the for-profit school faced lawsuits over how it misled students about the quality of its programs and job placement rates. More