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FORMER CHAIRMAN OF FAILED CREDIT UNION CHARGED IN ALLEGED BRIBE SCHEME

FORMER CHAIRMAN OF FAILED CREDIT UNION CHARGED IN ALLEGED BRIBE SCHEME
 BOSTON, Oct. 22 /PRNewswire/ -- A former chairman of the board of the now-failed Blue Hill Federal Credit Union ("Blue Hill") was charged today in connection with his receipt of over $148,000 from a Boston attorney from 1985 through 1989.
 U.S. Attorney A. John Pappalardo announced today that Cyril Hochberg, 61, of 250 Hammond Pond Parkway in Newton, Mass., surrendered at the offices of the Federal Bureau of Investigation today after a federal grand jury returned an indictment against him Wednesday, Oct. 21. Pappalardo stated that the indictment charged Hochberg with 62 counts of violation of the bank bribery statute.
 The indictment alleges that in 1985, Hochberg, while chairman of Blue Hill, selected Sheldon Fine, a Boston attorney, to prepare the legal documents necessary to close real estate loans for Blue Hill. The Indictment further alleges that in exchange for directing business to Fine, Hochberg required that a "referral fee" of 25 percent of all legal fees, and title insurance commissions earned by Fine on Blue Hill work be paid to Hochberg. In the period Sept. 13, 1985, through Jan. 5, 1989, Fine paid Hochberg a total of $148,044.32.
 The bank bribery statute makes it illegal for a director or officer of a federally insured financial institution to corruptly solicit or demand or corruptly accept or agree to accept payments intending to be influenced or rewarded in connection with the business of the financial institution.
 Blue Hill was declared insolvent by federal regulators in May 1990, and liquidated in December 1991.
 Each count with which Hochberg has been charged carries a maximum penalty of five years of imprisonment and a $250,000 fine.
 This case was investigated by special agents assigned to the Boston office of the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Lon F. Povich, of Pappalardo's Economic Crime Unit.
 -0- 10/22/92
 /CONTACT: U.S. Attorney's press office, 617-223-9445/ CO: ST: Massachusetts IN: SU:


CN -- NE013 -- 3907 10/22/92 17:59 EDT
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Publication:PR Newswire
Date:Oct 22, 1992
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