Federal authorities have arrested the influential leader of New York’s correctional officers’ union on fraud charges, the first major criminal case connected to the investigation of Mayor Bill de Blasio’s campaign fundraising.
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Hedge fund manager Murray Huerfeld was also arrested this morning.
The complaint says the Federal Bureau of Investigation has been investigating the scheme since 2014, and has a cooperating witness who has pleaded guilty.
Feds say the transfers, discovered when U.S. Attorney Preet Bharara subpoenaed COBA’s financial records in May, resulted in Seabrook receiving the bribes from 2013 to 2015.
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. “The bribed investment was something of a lifeline for the fund”, said Bharara, noting that Seabrook’s investment accounted for more than half of the incoming dollars to Platinum that year.
“At the same time that he acknowledged the problems at Rikers, he also feels like his officers should use whatever force is necessary to control inmates and he defends their right to do so”, Rodriguez said. Democratic Mayor Bill de Blasio (dih BLAH’-zee-oh) has sought to distance himself from Seabrook. The union is the largest municipal jail union in the United States, according to the News.
Mr. Huberfeld, the founder of Centurion Credit Management, and subsumed by Platinum Partners was arrested around 6 a.m like Mr. Seabrook in his own home.
Union President Norman Seabrook initiated an “explicit bribery scheme” with a leader of Platinum Partners, the Manhattan US attorney’s office alleged. Investigators searching Seabrook’s home recovered the luxury bag and 10 pairs of Ferragamo shoes, prosecutors said.
Norman Seabrook was released on a $250,000 bond after a bail hearing in federal court in Manhattan a short while ago.
Among the several officers at that trip, the New York Daily News reported, was then-NYPD Chief of Department Philip Banks III.
Messages left with Seabrook and Huberfeld’s lawyers weren’t immediately returned.
“[It’s time that] Norman Seabrook got paid”, Seabrook said, according to the complaint against him.
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Seabrook controlled an $81 million member retirement fund, according to the complaint. A criminal complaint accuses Seabrook of directing $20 million of union money to the hedge fund in exchange for a $60,000 kickback.
