Correction Officers’ Union Leader Arrested at Bronx Home

An FBI and NYPD Internal Affairs Bureau investigation has led to two high-profile arrests, including that of Norman Seabrook, president of the Correction Officers’ Benevolent Association.

Huberfeld was ordered to disgorge profits and fined for violating securities laws at his Broad Capital fund. He later provided Platinum with start-up money and ran Nordlicht’s credit-focused hedge funds until Platinum took them over in 2011. His lawyer has said he’ll fight the charges.

In one instance in 2014, confidential witnesses claimed to have purchased an expensive Salvatore Ferragamo bag in which they allegedly placed $60,000 in cash for Seabrook, who “was angry that it was not as much money as he was initially promised”, ABC7 added.

The longtime head of the nation’s largest municipal jail guard union was paid tens of thousands of dollars in cash, delivered in a luxury handbag, in exchange for steering $20 million in union money in 2014 to a hedge fund, according to a criminal complaint. Reichberg’s lawyer was not immediately available for comment on Wednesday.

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Seabrook and Huberfeld face one count of conspiracy to commit fire fraud and one count of conspiracy to commit honest wire fraud, according to the complaint. To disguise the kickback, Huberfeld created a fake invoice for Rechnitz’s eight season tickets to the Knicks, paid for from Platinum funds that were funneled to Seabrook.

A source familiar with the matter has told Reuters that Seabrook was first referred to Platinum by Jona Rechnitz, a businessman at the heart of an ongoing corruption probe that is examining Mayor Bill de Blasio’s fundraising activities, among other things. Platinum generally has reported steady returns.

The FBI in NY says Norman Seabrook and Murray Huberfeld of Platinum Partners, L.P. were arrested early Wednesday.

Court papers say Seabrook complained to an unnamed third party, who is now co-operating with the investigation, “about not getting any personal financial benefit for investing COBA money” in December 2013.

The head of the New York City correction officers’ union is facing federal corruption charges along with a hedge-fund founder.

A 17-page criminal complaint says Huberfeld “agreed to pay kickbacks to Seabrook”.

Union representatives did not immediately respond to requests for comment.