Wednesday, June 8, 2016

Norman Seabrook,President of the Correction Officers' Benevolent Association, is Arrested by the FBI For Pension Fund Fraud

What needs to be said: Seabrook's double dealing was well-known for many years. I guess it is better late than never.

Betsy Combier

Correction Officers' Benevolent Association President Norman Seabrook was
arrested by the FBI on Wednesday morning.

The FBI has arrested the leader of a powerful city union on corruption charges in an ongoing investigation focusing on the NYPD and City Hall.
Norman Seabrook, longtime president of the Correction Officers' Benevolent Association, was arrested at his Bronx home Wednesday morning without incident.

Investigators say Seabrook took kickbacks in connection with his union’s pension fund investments.
Seabrook allegedly received tens of thousands of dollars in payoffs and in exchange steered business to the Platinum investment fund. The former head of the fund, Murray Huberfeld, was also arrested Wednesday morning.

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 mayor insists his fundraising followed all laws.
Seabrook has ties to two Borough Park fundraisers for the mayor — Jona Rechnitz and Jeremy Reichberg. The FBI investigating whether Rechnitz and Reichberg provided free vacations and other gifts to Seabrook and former NYPD Chief of Department Philip Banks.

All have denied any wrongdoing.


BRONX, New York (WABC) --Norman Seabrook and hedge fund financier Murray Huberfeld 
were arrested Wednesday morning in connection with a federal investigation.

The two are charged with one count of honest services wire fraud and one count of conspiracy 
to commit honest services wire fraud. They will appear Wednesday in federal court in Lower Manhattan.

U.S. Attorney Preet Bharara is expected to discuss the arrests at a news conference.

The investigation predates the ongoing corruption probes in the New York City Police Department and the city government.

However, one of the Brooklyn businessmen at the central of the investigation, Jona Rechnitz, is believed to have referred Seabrook to Huberfeld.

Seabrook's invested $10 million from the union pension fund through Huberfeld and his Platinum Investment Fund.

Huberfeld is then alleged to have kicked back some of the money to the union president.

Federal investigators have been looking into Seabrook's relationship with Huberfeld for at least 
two years.

Huberfeld has prior arrests, including a 1993 fraud conviction. He also had to settle a separate 
action with the SEC in 1998.

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