Kaufman Attorney Says Ex-Melrose CEO Conducted Legal Business, Not Bribery Scheme

CEO Attorneys for Alan Kaufman, former CEO of Melrose Credit Union, are asking a federal judge to dismiss his indictment, contending that the allegations against him were legitimate business arrangements, not bribes.

“The Indictment alleges no more than that Mr. Kaufman and [codefendant Anthony Georgiton] were simultaneously friends and business associates,” the attorneys said, in a memorandum arguing that the charges be dismissed.

It goes on to state that, “the mere allegation that a credit union officer received a gift from a bank customer is insufficient if the Indictment does not also allege a particular connection with the credit union’s business.”

Kaufman and Georgiton, a taxi medallion broker, were indicted in July.

Kaufman, whose family founded the credit union, was charged with accepting free housing and financing for the purchase of his personal residence from Georgiton, owner of a taxi medallion brokerage company, who also was indicted.

Kaufman also was charged with accepting gifts and trips from an unnamed media company in exchange for increased advertising with the media company.

Melrose, which made millions of dollars in loans to taxi drivers in New York City, was taken over by the NCUA in October. Many drivers who took out the loans could not repay them as the value of their taxi medallions plunged as a result of competition from ride-sharing companies.

Kaufman’s attorneys said the indictment stated that Kaufman did not pay rent to Georgiton but fails to state whether Kaufman compensated Georgiton in other ways.

The indictment also fails to demonstrate that Kaufman violated Melrose policies in paying for the naming rights to the Melrose Ballroom, which was owned by Georgiton.

Federal prosecutors also failed to demonstrate that the free “incentive trips” that Kaufman took were not legitimate business trips, they said.

“Nor does the Indictment allege that Mr. Kaufman acted with corrupt intent, and it fails to allege that Mr. Kaufman breached any duty to MCU,” the attorneys said.

Finally, the attorneys argue that federal prosecutors filed the charges in the wrong federal court. The indictment was filed in the U.S. District Court for the Southern District of New York, while the allegations of misconduct occurred in jurisdiction handled by other federal courts in New York.