Post by Logan on Jun 9, 2016 2:39:45 GMT -6
Fraud Charges Against Jail Officers’ Union Chief With a Taste for Luxury
Mr. Rechnitz, who has pleaded guilty and is cooperating in the Seabrook case, is also a central target in one of the investigations that are focused on the campaign fund-raising of Mayor Bill de Blasio, a Democrat. He is not named in the complaint and is referred to instead as Cooperating Witness 1 or CW-1.
Both Mr. Seabrook and Mr. Huberfeld, an associate at the hedge fund, Platinum Partners, have been charged with one count of honest services fraud and one count of conspiracy to commit honest services wire fraud. Mr. Seabrook was released on $250,000 bond and Mr. Huberfeld on $1 million bond. Both have been ordered to remain in the New York City region.
After the meeting at the hotel, according to prosecutors, Mr. Rechnitz went to Platinum promising to arrange a deal with the union to become a major investor. The catch, he said, was that Mr. Seabrook would have to be compensated. Mr. Huberfeld agreed to the arrangement and was willing to pay Mr. Seabrook 10 percent of all profits that the hedge fund made on the union’s investment.
Mr. Seabrook, whose salary is $300,000 a year with his union stipend, had one overarching concern, according to the complaint: how big his cut would be.
Read more: www.nytimes.com/2016/06/09/nyregion/norman-seabrook-jail-officers-union-arrest.html
Mr. Rechnitz, who has pleaded guilty and is cooperating in the Seabrook case, is also a central target in one of the investigations that are focused on the campaign fund-raising of Mayor Bill de Blasio, a Democrat. He is not named in the complaint and is referred to instead as Cooperating Witness 1 or CW-1.
Both Mr. Seabrook and Mr. Huberfeld, an associate at the hedge fund, Platinum Partners, have been charged with one count of honest services fraud and one count of conspiracy to commit honest services wire fraud. Mr. Seabrook was released on $250,000 bond and Mr. Huberfeld on $1 million bond. Both have been ordered to remain in the New York City region.
After the meeting at the hotel, according to prosecutors, Mr. Rechnitz went to Platinum promising to arrange a deal with the union to become a major investor. The catch, he said, was that Mr. Seabrook would have to be compensated. Mr. Huberfeld agreed to the arrangement and was willing to pay Mr. Seabrook 10 percent of all profits that the hedge fund made on the union’s investment.
Mr. Seabrook, whose salary is $300,000 a year with his union stipend, had one overarching concern, according to the complaint: how big his cut would be.
Read more: www.nytimes.com/2016/06/09/nyregion/norman-seabrook-jail-officers-union-arrest.html