Opinion ID: 197346
Heading Depth: 2
Heading Rank: 1

Heading: Vaknin's Troubles.

Text: 7 Vaknin first approached APSB in 1987, seeking to refinance several properties. Informed by Annarummo that his request for funds would be facilitated if he greased the wheels, Vaknin paid Annarummo $17,500 and thereafter received the loan. In 1988, Vaknin sought to borrow more money and Annarummo again asked for a bribe in exchange for his assistance in getting the loan underwritten. Vaknin paid him $12,500 prior to securing loan approval. This sequence repeated itself later that same year, when Vaknin slipped Annarummo another bribe and secured a third loan (which was approved by the bank after a series of machinations in which Annarummo presented false information to the credit committee). Although Vaknin repaid the initial refinancing in full, he defaulted on both the 1988 loans and the Bank sustained losses in excess of $900,000. 8 When indicted, Vaknin pled guilty to a single count of bank bribery. See 18 U.S.C. § 215 (1994). The Presentence Investigation Report (PSI Report) did not recommend restitution. In response to the prosecution's objection, the probation officer explained: 9 [I]t is not clear as to whether the losses incurred by the bank were a direct result of a fraudulent loan being negotiated as a result of the bank bribery or whether the losses were attributable to other factors, such as a downturn in the economy which affected the real estate market. 10 At the disposition hearing, Judge Boyle sentenced Vaknin to an incarcerative term of twelve months and one day, two years' supervised release, and a $50 special assessment. On the restitution issue, the judge sided with the prosecution; concluding that there would have been no funds advanced if the bribes had not been paid, the judge held Vaknin liable for the losses resulting from the defaulted loans, rejected the probation officer's downturn in the economy hypothesis, and ordered Vaknin to pay restitution to the FDIC in the sum of $1,000,000. 11