Norman Seabrook Arrested on Federal Corruption Charges

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.

1 reply
  1. Joe Levin
    Joe Levin says:

    BRONX, New York — Norman Seabrook, the former president of the Correction Officers’ Benevolent Association now facing federal corruption charges, spoke exclusively to Eyewitness News Thursday outside his home.

    The longtime head of New York City’s jail guard union was removed from his post following his arrest, with union officials saying their bylaws dictate that only active correction officers can serve.

    Seabrook was suspended by the city Department of Correction and stripped of his badge and gun, accused of taking $60,000 in kickbacks for funneling union pension money into a hedge fund.

    “I understand this is politics,” he said. “I understand it. And, you know, it’s my turn in the battle. But at the end of the day, we will be victorious.”

    Seabrook’s former second-in-command, Elias Husamudeen, is now the union’s first new president in 21 years. He said he’s concerned and saddened, but stressed that Seabrook is innocent until proven guilty.

    Seabrook was the only candidate running in an upcoming union election. Officials didn’t say how his ouster will affect that race.

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