Former Irvington Citizen's Budget Committee Member Charged in Massive Fraud

• Editor's Note: Allen Reichman is a former member of the Irvington Citizen's Budget Commitee.

A financial services executive from Irvington is one of three business executives who have been indicted in connection with tax evasion and fraud schemes valued at more than $100 million.

The U.S. Attorney’s Office says the executives are charged in an investigation that is an offshoot of the probe of Park Avenue Bank President and CEO Charles Antonucci for attempting to steal $11 million from taxpayer-provided financial rescue funding.

“Nearly two years ago, we secured the first conviction against a defendant, Park Avenue Bank President and CEO, Charles Antonucci, for attempting to steal $11 million from the taxpayer-funded TARP,” said Preet Bharara, U.S. Attorney for the Southern District of New York. “Today’s indictment charging two of Antonucci’s alleged co-conspirators represents ‘Part Two’ in our ongoing investigation into the misconduct at the bank that ultimately led to its collapse. As alleged, 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. We will not tolerate fraud or those who steal from taxpayers for their own personal gain.”

Huff, 51, of Caneyville and Louisville, KY, Morris, 37, of Queens, NY, and Reichman, 52, of Irvington, were arrested at their homes earlier this morning, and they will be presented in federal courts later today in Manhattan and Louisville.

Reichman was appointed to the Irvington Citizen’s Budget Committee in April 2007 and served one two-year term as head of the sub-committee that focused on the police department’s budget. 

The case has been assigned to U.S. District Judge Naomi Reice Buchwald, and the first conference is scheduled for Oct. 10 at 3:30 p.m.

This case is being handled by the U.S. Attorney’s Office Complex Frauds Unit. Assistant U.S. Attorneys Zachary Feingold and Janis Echenberg and Special Assistant U.S. Attorney Tino Lisella are in charge of the criminal case.

The indictment charges that Huff controlled numerous entities located throughout the United States, but instead of exercising control of these companies openly Huff concealed his control by installing other individuals to oversee the companies’ day-to-day functions and to serve as the companies’ titular owners, directors or officers.

Huff is accused of controlling the companies and their finances, using them to orchestrate a number of interrelated frauds. The indictment contends a key to the success of these schemes was Huff’s corrupt relationship with Park Avenue Bank and its executives, Charles J. Antonucci Sr., the President and Chief Executive Officer and Matthew L. Morris, the Senior Vice President. Allen Reichman, the Executive Director of Investments at an investment bank and financial services company headquartered in New York, is also accused of being involved in one of Huff’s and Morris’ corrupt schemes.

A chart of the charges against the men, as well as the maximum penalties associated with each charge, follows:

COUNT

DEFENDANTS

OFFENSE

MAXIMUM PENALTY

One

HUFF

18 U.S.C. §§ 1343 and 2 Wire Fraud Related to O2HR

20 years in prison, $250,000 fine or 2x pecuniary loss/gain

Two – Six

HUFF

26 U.S.C. § 7201 18 U.S.C. § 2

Tax Evasion

Five years in prison, $100,000 fine

Seven

HUFF

26 U.S.C. § 7212(a)

Corrupt Obstruction of Administration of Internal Revenue Laws

Three years in prison, $5,000 fine

Eight

HUFF and MORRIS

18 U.S.C. § 371

Conspiracy to Commit Bank Bribery

Five years in prison, $250,000 fine or 2x pecuniary loss/gain

Nine

HUFF

18 U.S.C. § 1349

Conspiracy to Commit Bank Fraud Related to $4.5 Million in Loans

30 years in prison, $1,000,000 fine

Ten

HUFF and MORRIS

18 U.S.C. § 371

Conspiracy to Commit Fraud on Bank Regulators

Five years in prison, $250,000 fine or 2x pecuniary loss/gain

Eleven

HUFF and MORRIS

18 U.S.C. §§ 1005 and 2 Fraud on the Bank Regulators

30 years in prison, $1,000,000 fine

Twelve

HUFF and MORRIS

18 U.S.C. § 1349

Conspiracy to Commit Wire Fraud Related to Theft of $2.3 Million from GEE

20 years in prison, $250,000 fine or 2x pecuniary loss/gain

Thirteen

HUFF, MORRIS, and REICHMAN

18 U.S.C. § 1349

Conspiracy to Commit Wire Fraud Related to Oklahoma Insurance Department

20 years in prison, $250,000 fine or 2x pecuniary loss/gain