By Former Bank MD Sentenced to 30 months imprisonment over fraud
Ghazali Ibrahim
Mendel Zilberberg, a former member of Park Avenue Bank’s board of directors, has been sentenced to 30 months in prison for his role in a fraudulent loan scheme by United States court.
The sentence was confirmed in a statement made by Damian Williams, the United States Attorney for the southern District of New York on Tuesday.
The scheme involved obtaining a fraudulent $1.4 million loan from Park Avenue Bank, resulting in a loss of over $1 million for the institution.
According to Damian, Zilberberg was previously found guilty following a trial before U.S. District Judge George B. Daniels.
U.S. Attorney Damian Williams emphasized the importance of upholding integrity in financial institutions and condemned Zilberberg’s exploitation of his positions.
He argued that Zilberberg manipulated his roles as a legal practitioner and a director of Park Avenue Bank and conspired with Aron Fried , a co-defendant to obtain a loan from the bank, leading to significant financial harm to the institution.
In addition to the prison term, Zilberberg was sentenced to three years of supervised release and ordered to pay $1,066,853 in restitution and $506,000 in forfeiture.
