BRONX, New York – 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 thecity 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.