Former Credit Union CEO Charged In Bribery Scheme

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Alan Kaufman, former CEO of the troubled Melrose Credit Union, was indicted by a federal grand jury in New York City, on charges of accepting bribes from a taxi medallion broker who was a member of the credit union.

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

About a month before the credit union was taken over, the NCUA filed administrative charges against Kaufman, alleging the bribery scheme. At the time, the other party in the supposed scheme was not unveiled.

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