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Defendant Pleads Guilty to Wire Fraud Conspiracy
Murray Huberfeld, the 57-year-old founder of Platinum Partners hedge fund, has pleaded guilty to one count of conspiracy to commit wire fraud in connection with a bribery scheme involving the former president of the nation’s largest municipal correction officers union, Norman Seabrook.
As part of the plea agreement, Huberfeld admitted to conspiring with an intermediary, Jona Rechnitz, to cause Platinum to pay $60,000 to Rechnitz’s company by falsely representing that the money was payment for courtside tickets to eight New York Knicks basketball games. In reality, the $60,000 was a reimbursement to Rechnitz for having paid Seabrook for his efforts to get COBA to invest millions of dollars in Platinum.
The scheme, which took place in 2013 and 2014, involved Seabrook causing COBA to invest approximately $20 million of its funds into Platinum, including $15 million from a retirement benefits program funded by the City of New York. In exchange for his efforts, Seabrook was paid $60,000 in cash, delivered to him in a men’s luxury handbag.
Huberfeld, who continued to help operate Platinum unofficially even after his formal affiliation with the fund had ceased, faces a maximum term of five years in prison for his role in the conspiracy. He is scheduled to be sentenced on September 14, 2018.
The plea deal comes as a trial against Seabrook, who faces charges of conspiracy to commit honest services wire fraud, substantive honest services wire fraud, and wire fraud with respect to COBA’s right to control its assets, is set to commence on July 30, 2018.
The case is a significant blow to the hedge fund industry, where corruption and insider trading have long been a concern. As the investigation continues, it is clear that those who engage in corrupt practices will be held accountable for their actions.
The Manhattan U.S. Attorney’s Office, led by Geoffrey S. Berman, will continue to work with law enforcement partners to fight fraud and corruption in all its forms.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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