Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (“FDIC”), announced today the unsealing of an Indictment charging attorney MENDEL ZILBERBERG, a former director of Park Avenue Bank (the “Bank”), and ARON FRIED with bank fraud and related charges for perpetrating a fraudulent scheme to obtain a $1.4 million loan from the Bank. The defendants caused the Bank to issue the loan to a straw borrower on the basis of false statements and misrepresentations, when in fact the defendants received and used the loan proceeds, resulting in a loss of over $1 million to the Bank when the loan defaulted. ZILBERBERG was also separately charged with embezzlement and misappropriation of Bank funds while he was a director and insider of the Bank. ZILBERBERG and FRIED were arrested this morning and will be presented later today before U.S. Magistrate Judge Katharine H. Parker. The case has been assigned to U.S. District Judge George B. Daniels.