IRVINGTON, N.Y. A 52-year-old Irvington man has been accused of helping a Kentucky businessman and two Manhattan bank executives defraud an Oklahoma insurance company with an illegal loan that earned him hundreds of thousands of dollars in commission.
Allen Reichman has been charged with conspiracy to commit wire fraud, according to the U.S. Attorneys Office . Reichman faces up to 20 years in prison, a $250,000 fine or two times the pecuniary loss/gain.
Reichman is accused of helping businessman Wilbur Anthony Huff, 51 of Caneyville and Louisville, Ky., and bank executives Matthew L. Morris, 37, of Queens, and Charles Antonucci buy the Providence P&C insurance company of Oklahoma with an illegal $30 million loan.
The U.S. Attorneys Office said Reichman had been repeatedly warned not to extend the loan because it was illegal.
Huff and Morris face additional tax evasion, conspiracy and fraud charges.
Wilbur Anthony Huff was a vortex of fraud who also evaded over $50 million in taxes owed to the IRS and, along with Matthew Morris and Allen Reichman, plundered the assets of an insurance company, leading to its business failure, U.S. Attorney Preet Bharara said in a press release. We will not tolerate fraud or those who steal from taxpayers for their own personal gain.
Between July 2008 and November 2009, Reichman, an executive director of investments at a New York City-based investment bank and financial services company, helped Huff and Antonucci get a $30 million loan to purchase Providence P&C using that insurance company's own assets as collateral for the loan, the U.S. Attorneys Office said.
Using Providence P&C's assets as collateral is against Oklahoma law, so Reichman and the others created the illusion that Park Avenue Bank, not Reichman's investment firm, was funding the purchase of Providence P&C, the U.S. Attorneys Office said.
Huff is accused of receiving $4 million from the scheme, Antonucci $500,000 and Morris $670,000, the U.S. Attorneys Office said.
Providence P&C failed in November 2009 because of the group's actions, the U.S. Attorneys Office said.
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