Norman Seabrook, the longtime president of the Correction Officers’ Benevolent Association, and Murray Huberfeld, who ran several funds that were later taken over by New York-based Platinum Partners, were charged with fraud and conspiracy, according to a spokesman for U.S. Attorney Preet Bharara. They were both charged with committing honest services wire fraud.
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The news comes as the federal authorities investigate allegations that NYPD officers engaged in a cash-for-favors scheme, and as Mayor de Blasio’s campaign fundraising is under scrutiny.
The relationship between the mayor and Seabrook has been close in the past.
The FBI in NY says Norman Seabrook and Murray Huberfeld of Platinum Partners, L.P. were arrested early Wednesday. Seabrook allegedly complained to this individual that he was entitled to better compensation for the hard work he put in overseeing COBA’s funds, saying it was “time Norman Seabrook got paid”.
“RUNNING OUT OF ADJECTIVES’ The case is the latest in a string of high-profile public corruption cases brought by the office of Preet Bharara, the U.S. Attorney in Manhattan, who past year secured the convictions of the legislative leaders of the state Assembly and Senate”.
The charges, brought by prosecutors in the office of Preet Bharara, the United States attorney for the Southern District of NY, involve Mr. Seabrook’s investment of $20 million from his union and its annuity fund in Platinum Partners through Mr. Huberfeld, and Mr. Huberfeld’s payment of a kickback to the union leader, according to the criminal complaint unsealed Wednesday morning.
Union President Norman Seabrook initiated an “explicit bribery scheme” with a leader of Platinum Partners, the Manhattan US attorney’s office alleged.
Union representatives haven’t responded to comment requests.
According to CW-1, Huberfeld was secretly running Platinum, but his role was not publicly acknowledged because of “a prior lawsuit or investigation relating to a fund Huberfeld previously ran”, the complaint said. He has repeatedly said that he and his administration have acted legally. Huberfield allegedly agreed to pay Seabrook a kickback of between $100,000 and $150,000 each year, according to an agreed-upon formula. The accusations levied against Seabrook and Huberfeld do not directly involve de Blasio.
Rechnitz and Reichberg had ties to de Blasio when he ran successfully for mayor in 2013.
According to Bharara, the investment from COBA came at a time when Platinum “desperately needed additional money”, as “high net worth investors” were vacating the fund.
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The cash was delivered by an unnamed intermediary to Seabrook, according to the complaint. The witness agreed to use his own money to bribe Seabrook and at Huberfeld’s suggestion created a fake invoice for New York Knicks tickets he supposedly sold to Platinum in order to get reimbursed, the complaint said.
