Kaufman Says Auditor Records Will Clear Him of Melrose Charges

Attorneys for Alan Kaufman, the former CEO of the troubled Melrose Credit Union, are contending that the institution’s board and private auditors were aware of the living arrangements and entertainment that are at the center of his federal indictment.

The attorneys are requesting a subpoena for records from Merrill I. Rosen and Associates, the auditors, saying that the records will demonstrate that Kaufman had no criminal intent in his business dealings.

U.S. District Judge Lewis Kaplan recently refused to dismiss the charges against Kaufman and taxi broker Tony Georgiton. He rejected the records request based on a letter, but said the attorneys could file a formal motion requesting the documents.

Kaufman, whose family founded the credit union, is charged with accepting free housing and financing for the purchase of his personal residence from Georgiton, 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. 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.

In the request for documents, Kaufman’s attorneys said that the accountant records “should establish that members of the NCUA board were aware of Mr. Kaufman’s housing arrangement with Mr. Georgiton and Mr. Kaufman’s travel with advertising vendors.”

They said the credit union’s attorneys, accountants and board members conducted an arms-length assessment of the loans and business arrangements, adding that, “Mr. Kaufman acted in good faith.”