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Hanover Bank CEO gave gigs to his unqualified kids, investor claims



Hanover Bancorp is a Long Island-based community bank — but it’s run more like a personal piggy bank for its chief executive and his kids, according to an investor’s explosive accusations.

In addition to taking a lavish salary and bonus ahead of an initial public offering that could happen this year, chairman and CEO Michael Puorro handed out a job to his son that he wasn’t qualified for — and a job to his daughter that she didn’t even show up for, the investor’s letter claims.

Puorro used “the submission of inaccurate time sheets” to provide his daughter with a “no-show job” and full benefits despite actually being employed elsewhere, Brian Pun, a Queens-based real estate investor, alleged in an open letter to shareholders late Monday.

Likewise, Pun asserts that Puorro hired his son to work as a bank accountant despite him not being an actual accountant. The CEO uses his son to do building inspections on bank properties, paying him significantly more than previous inspectors were paid, Pun claims.

Hanover doesn’t disclose the compensation of its CEO, but “it is believed that Puorro receives a cash salary and bonus equaling about $1 million” — a total that ran to $1.6 million last year as the board increased his stock awards sixfold, according to Pun.

In a statement to The Post, Hanover defended its CEO and alluded to its upcoming IPO.

“Under Mike Puorro’s leadership, the value of Hanover Bank has grown exponentially, with significant and steady growth in assets, loans and deposits, and more than 100-percent accretion to tangible book value per share,” the statement said.

With $862 million in assets under management, Hanover’s net income excluding costs of a merger last year was up to $6.7 million in 2019 from $5.3 million in 2018. When Puorro took over in 2012, the bank’s assets hovered at around $58 million.

“Management is focused on positioning Hanover to access the capital markets for the benefit of all shareholders and will not allow false allegations made by those with questionable motives derail Hanover from this course.”

According to a source close to Hanover, Pun is in cahoots with its rival, Glen Cove-based First Central Savings Bank, as well as a slew of top executives who left Hanover last year after it acquired Chinatown Federal Savings Bank, including its chief credit officer, chief lending officer and mortgage operations manager.

“This is a power-grab by individuals with undisclosed conflicts of interest and personal financial motivations,” said the source.

Pun, meanwhile, claims in his letter that Puorro is too powerful within Hanover and “controls a do-nothing Board who serves at his behest and rubber-stamps his actions.”

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