Hedge Fund Manager Pleads Guilty to Wire Fraud Benefiting NYC Corrections Union Boss

Murray Huberfeld had something on his mind other than front row seats at New York Knicks home games. That’s why he’s headed for prison. On May 25, Huberfeld, founder and head of a now-defunct hedge fund, pleaded guilty in Manhattan federal court to wire fraud conspiracy in connection with his payment of a $60,000 bribe through an intermediary to Norman Seabrook, deposed longtime president of New York City’s Correction Officers Benevolent Association (COBA), which represents employees at the sprawling Rikers Island jail complex. In exchange for the bribe, Seabrook allegedly had steered $20 million in COBA pension funds to the hedge fund, known as Platinum Partners. Huberfeld is scheduled for sentencing on September 14. Seabrook is set to go on trial on July 30.

Union Corruption Update covered this story at length back in June 2016. Norman Seabrook, who ran the 9,000-member Correction Officers Benevolent Association for more than two … Read More ➡

NYC Corrections Union Boss, Hedge Fund Manager Busted for Fraud

It wasn’t as if Norman Seabrook needed the money. But in accepting it, he jeopardized the retirement of union members. Last Wednesday, June 8, Seabrook, president of New York City’s Correction Officers Benevolent Association (COBA), was arrested by FBI agents and charged with honest services fraud for receiving $60,000 in cash from an executive of a troubled Manhattan hedge fund, Platinum Partners, in exchange for steering $20 million in union pension money to the fund. Platinum Partners CEO Murray Huberfeld was similarly charged. Seabrook is out on $250,000 bond, but given his ouster by the COBA board, he doesn’t have much to do. U.S. Attorney Preet Bharara (in photo) termed this “a straightforward and explicit bribery scheme.” The actions are part of a wider probe into NYPD corruption.

The Correction Officers Benevolent Association, with more than 9,000 members, is the largest union of its type in the country. And most … Read More ➡