This paper focuses on the actions of Charles J. Antonucci, Sr., who contributed greatly to the failing of The Park Avenue Bank in New York. Unless otherwise noted, the facts of this case were learned in whole and in part from the complaint filed against Antonucci by Ricardo Velez, the Director of the Criminal Investigations Bureau of the New York State Banking Department. The Park Avenue Bank, so named because its headquarters were located at 460 Park Avenue in New York City, was founded in 1987. In 2004, the Bank underwent a recapitalization and restructuring that resulted in a change of management. It was at this time that Charles J. Antonucci, Sr., became the president and CEO of the Park Avenue Bank. He also assumed a place on the Bank’s Board of Directors. Antonucci was responsible for organizing a group of investors that invested more than $10 million into the Park Avenue Bank in 2004, which had four retail branches in the Manhattan and Brooklyn areas of New York City, and he apparently impressed those investors with his previous work in turning around troubled banks (Wei and Bray). In addition to holding CEO, president, and board positions for the Park Avenue Bank, Antonucci was also involved in a number of other businesses. Antonucci was also the 100% owner of Bedford Consulting Group, Inc., Easy Wealth Group, Ltd., and the Park Avenue Property and Casualty Insurance Company. Additionally, he had 20% ownership in three properties in Fishkill, NY: one at 1042 Main Street, another at 2 Broad Street, and the last at 48 Jackson Street. Furthermore, Antonucci also held 20% ownership in a company called TSV Capital. All of these businesses will play roles in the schemes in which Antonucci engaged. In short, Antonucci abused his position at the Park Avenue Bank by engaging in at least eight different schemes involving fraud and/or misuse of company funds. In a majority of these schemes, he had help in the form of co-conspirators, none of whose identities have been revealed at this point. The main co-conspirator will be referred to as Mr. X throughout this paper. Although it is unknown how many people work for him, at least three of Mr. X’s employees and/or associates also conspired with Antonucci. Those three are referred to as Mr. W, Mr. Y, and Mr. Z. Mr. X became a client of the Park Avenue Bank in 2007, and he brought with him a number of different businesses, each one of which required a separate account at the Bank. In the complaint against Antonucci, those businesses are referred to as the “Oxygen-related entities” and include the following companies: Oxygen Unlimited, LLC; Oxygen Unlimited II, LLC; O2HR; PSQ, LLC; River Falls Financial Services; SDH Realty, Inc.; and TSV Capital, LLC. As was noted above, Antonucci had 20% ownership of TSV Capital. As with the businesses that Antonucci owned, many of the Oxygen-related entities figured into the scams that Antonucci and his co-conspirators carried out. One additional company that played a key role was the US Insurance Group, or USIG. USIG also had an account at the Bank, and Oxygen Unlimited had a 25% put option on USIG, which suggests that Mr. X had a hand in USIG as well. Furthermore, Mr. X’s administrative assistant was an account signer on all of the Oxygen-related entities as well as on the USIG account. As aforementioned, Antonucci was involved in at least eight different schemes in his time at the Park Avenue Bank. One of these involved the leasing and maintenance of the three properties in Fishkill, NY, in which he had partial ownership. Beginning sometime in 2005, the Park Avenue Bank began leasing the house at 1042 Main Street. The first floor of the house was reserved for the Bedford Consulting Group, which was owned by Antonucci, and the second floor was used as an office by Bank employees. Additionally, the Bank paid approximately $750,000 to have a storage center built behind the house to accommodate the Bank’s information technology recovery...
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