New York – Two well known names in the Jewish community warned the head of a large hedge fund that they intended to report him to the Securities and Exchange Commission for holding back more than a half million dollars when they withdrew their investment.
According to reports in the Observer, the Fruchthandler Foundation and the Yeshiva Rabbi Chaim Berlin Fund sent a letter on November 4, 2015, advising a lawyer for the Platinum Partners of the upcoming action.
As previously reported on TOT News, Murray Huberfeld, founder of Platinum Partners, was arrested on June 8th for giving hundreds of thousands of dollars in kickbacks to corrections union president Norman Seabrook in exchange for investments in his fund.
The letter charged that the Platinum Partners Value Arbitrage (International) Fund Limited withheld 10 percent of the amount due when the Fruchthandler Foundation and the Yeshiva Rabbi Chaim Berlin Fund redeemed their investments on March 31, 2014.
The letter also stated that if the outstanding funds were not received within five days, the parties involved would file a complaint with the SEC’s divisions of Enforcement and Investment Management and commence legal action.
The FBI raided Huberfeld’s Platinum Properties offices this week, but according to Reuters, that action was unrelated to the ongoing federal corruption probe being conducted by U.S. Attorney Preet Bharara that also involves Huberfeld.
In recent weeks, questions have arisen about Platinum’s financial status, with a Manhattan state judge questioning whether the fund was capable of paying up debt that it had been incurred.
While Platinum’s website touts $1.3 billion in assets, representatives of the hedge fund were in court on Wednesday to discuss an outstanding debt of $30 million to a private equity firm.
“I haven’t seen evidence that the fund is worth a billion dollars,” said Judge Saliann Scarpulla. “For all I know the fund is worth five cents.”
The Jewish community to which Huberfeld and all the players in this drama belong reserves special contempt for Jews who turn in other Jews.
A moser—a collaborator or informer—is the worst thing a Jew can be. The Oxford Dictionary of the Jewish Religion defines informing as, “The most heinous crime in the Jewish community and the informer its most despicable character.
Every step against him, even taking his life, was permitted in order to safeguard the interests of the community.” In fact, the central prayer of every Jewish worship service—the Amidah, said by observant Jews three times every day—includes a prayer against informers: “But for the informers, let there be no hope.”
For the Fruchthandler family to go to the SEC with its complaint against Huberfeld, knowing how that would be viewed by their peers, indicates an escalation to the point where they must have seen no other option to get their money back.
Indeed, last week the Simon Wiesenthal Center pushed Huberfeld off its board on June 15 and it’s fair to wonder what other Jewish organizations will now seek to untangle its financial or charitable relationship with Huberfeld and Platinum.
Huberfeld, who absurdly claimed to Reuters he was a “client” of Platinum in a 2014 story, clearly has more to worry about than stuffing cash into a Salvatore Ferragamo bag on behalf of a Correction Officers Benevolent Association official with posh tastes.