CEO indicted who got Fed $ to build b...

CEO indicted who got Fed $ to build battery-powered buses in Pittsfield!

Posted in the Pittsfield Forum

GMHeller

Since: Jan 08

United States

#1 Jun 6, 2008
Why no reportage on this in The Berkshire Eagle!?!
"High roller hit by fraud counts"
Friday, May 30, 2008
By STEPHANIE BARRY
[email protected]
http://www.masslive.com/republican/stories/in...
SPRINGFIELD - Years after his high-profile business deals have faded from the headlines, Michael J. Armitage has been charged with federal bank fraud and money-laundering.
According to a seven-count indictment issued yesterday by a grand jury in U.S. District Court, Armitage embezzled more than $1 million from Power Development Corp., a holding company for various power plants; failed to pay personal taxes between 1993 and 2006; and fraudulently obtained business and personal loans by concealing his debts.
The charges contradict the freewheeling public persona Armitage once displayed when he was a frequent presence in the downtown social and business scene.
Around 2000, after breaking ground on the controversial Berkshire Power plant in Agawam and launching a real estate venture in Springfield's so-called entertainment district, Armitage made no secret of his apparent successes.
"The good thing is I get paychecks from four different companies every month," he told The Republican during an interview that year. "It's hard to say how much I'm worth, though."
Armitage may have been coy about his finances, but could often be seen holding court at city restaurants and bars touting his various business ventures.
During the same interview with The Republican in 2000, Armitage listed a series of businesses in which he had a stake: U.S. Venture Group; U.S. Venture Properties; EV Worldwide and Power Development, among others.
The indictment issued yesterday also said Armitage, of Pittsfield and Fort Myers, Fla., had part ownership of Venture Properties, LLC, on Worthington Street and Electrastor LLC, a battery development company with offices at 333 West St., Pittsfield.
Armitage, who could not be reached for comment yesterday, is accused of obtaining three loans from United Bank by concealing the money he had embezzled and his debts to the IRS.
The loans included a $975,000 commercial loan for Venture Properties in 2001; a $170,000 commercial loan for Venture in 2002; and a $400,000 personal mortgage in 2003, according to the charges.
Recent filings with the Massachusetts secretary of state lists Victor C. Bruno as the manager of Venture Properties. Bruno is the son of late mob boss Adolfo Bruno, who has fatally shot outside an Italian-American social club in 2003.
Along with Armitage, Victor Bruno purchased several buildings on Worthington Street and opened a once-thriving cluster of bars and restaurants. Many have since closed.
Bruno has not been charged in connection with this indictment. He did not respond to a request for comment yesterday.
(Continued below)

GMHeller

Since: Jan 08

United States

#2 Jun 6, 2008
(Continued from from above)

For his part, Armitage allegedly filled out loan applications that portrayed a robust financial picture. The indictment says Armitage's partners at Power Development Corp. in 1999 discovered he had misappropriated funds through an audit, and he agreed to pay nearly $1.1 million as an initial repayment.
No charges were filed, and Armitage repaid the debt by forgoing payment and compensation that he would have collected as a principal of the company.
As for the personal mortgage, Armitage obtained a $390,000 loan in March 2003 from Richard L. Bready, the owner of a company called CRB Holdings, the indictment states. Bready assigned the note to BankNorth, the charges state.
Armitage and his wife closed on a subsequent loan to pay off Bready, according to the indictment. A $400,000 loan from United Bank went to settle Armitage's debt with him, the charges state.
That bank's settlement agent was Raipher D. Pellegrino, a former city councilor and high-profile attorney who was involved in investments with both Armitage and Bready previously, according to published reports.
Pellegrino owned a property at 417 Liberty St. with his brother and Bready, Joseph Pellegrino told The Republican during an interview in 2003. The group landed a three-year contract with the city when the site became the home of a Youth Assessment Center for the Springfield Police Department.
That and other of Pellegrino's investment deals fell under investigation in 2005, according to federal subpoenas issued to city officials that year.
He was never charged.
Pellegrino also was an investor in EV Worldwide, one of Armitage's former companies. No recent corporate filings were available for that entity.
Pellegrino did not respond to a request for comment yesterday.
Assistant U.S. Attorney Steven H. Breslow, who is prosecuting the case against Armitage, would not comment on who else, if anyone, faces exposure in this investigation.
"I can say the government's investigation is ongoing," he said.
Armitage could face up to 30 years in prison and a $1 million fine if convicted, according to the U.S. Attorney's Office. He has not been scheduled for arraignment and no arrest warrant was issued. <<<
RememberingBack1

Syracuse, NY

#3 Jun 6, 2008
GMHeller wrote:
(Continued from from above)
For his part, Armitage allegedly filled out loan applications that portrayed a robust financial picture. The indictment says Armitage's partners at Power Development Corp. in 1999 discovered he had misappropriated funds through an audit, and he agreed to pay nearly $1.1 million as an initial repayment.
No charges were filed, and Armitage repaid the debt by forgoing payment and compensation that he would have collected as a principal of the company.
As for the personal mortgage, Armitage obtained a $390,000 loan in March 2003 from Richard L. Bready, the owner of a company called CRB Holdings, the indictment states. Bready assigned the note to BankNorth, the charges state.
Armitage and his wife closed on a subsequent loan to pay off Bready, according to the indictment. A $400,000 loan from United Bank went to settle Armitage's debt with him, the charges state.
That bank's settlement agent was Raipher D. Pellegrino, a former city councilor and high-profile attorney who was involved in investments with both Armitage and Bready previously, according to published reports.
Pellegrino owned a property at 417 Liberty St. with his brother and Bready, Joseph Pellegrino told The Republican during an interview in 2003. The group landed a three-year contract with the city when the site became the home of a Youth Assessment Center for the Springfield Police Department.
That and other of Pellegrino's investment deals fell under investigation in 2005, according to federal subpoenas issued to city officials that year.
He was never charged.
Pellegrino also was an investor in EV Worldwide, one of Armitage's former companies. No recent corporate filings were available for that entity.
Pellegrino did not respond to a request for comment yesterday.
Assistant U.S. Attorney Steven H. Breslow, who is prosecuting the case against Armitage, would not comment on who else, if anyone, faces exposure in this investigation.
"I can say the government's investigation is ongoing," he said.
Armitage could face up to 30 years in prison and a $1 million fine if convicted, according to the U.S. Attorney's Office. He has not been scheduled for arraignment and no arrest warrant was issued. <<<
somebody already nicely posted this a thread to this article yesterday-which is the same way you foundout about it.-did you realllllllly need to copy and paste it?
RememberingBack1

Syracuse, NY

#4 Jun 6, 2008
big huge shocking surprise-CEO's are corrupt as well as politicans (whether it be city,town,state government) no matter what party (democrat or republican) whats your next big news flash?
ArlosGuzzo

United States

#5 Jun 6, 2008
Did the metion Gerry Doyles name in the indictment?
Gerry Doyle

Buffalo, NY

#6 Jun 6, 2008
I am not a crook!

GMHeller

Since: Jan 08

United States

#7 Jun 6, 2008
Who was the Congressman who acted as point man for the $250,000 federal grant?
Any US Senators involved?
There's a lot of Mafia linkage in Mr. Armitage's business connections.
And of course, all the politicians have plausible deniability with regard to that aspect.
Besides, Mr. Olver wouldn't know what was going on around Springfield since it's not his district.

GMHeller

Since: Jan 08

United States

#8 Jun 6, 2008
Correction: Who was the Congressman who acted as point man for the $1.35 million federal grant that disappeared, and was supposed to go to pay for the make-believe electric buses that were to be built in Pittsfield by Armitage's company, Electric Vehicles Worldwide?

GMHeller

Since: Jan 08

United States

#9 Jun 8, 2008
Did Michael Armitage and/or his associates in his various enterprises make campaign contributions to Liberal Democrat Congressman John Olver (who facilitated the $1.35 million federal grant to EV Worldwide) and/or to others in the Massachusetts Congressional delegation?
And if so, how much?
Jim Ruberto

Buffalo, NY

#10 Jun 8, 2008
That's why I hightailed it out of Texas after I bankrupted my plastics company!!

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