NYPD Corruption Scandal – Man Who Steered $10 Million Union Cash To Hedge Fund

Jona Rechnitz, a businessman at the heart of the NYPD corruption scandal steered the president of the city correction officers union to a hedge fund where he invested $10 million in membership money,

hedgeJona Rechnitz helped Norman Seabrook, head of the Correction Officers’ Benevolent Association, put the union’s cash into the Platinum Partners hedge fund, the Wall Street Journal reported.

Seabrook was among the first law enforcement officials scrutinized by the FBI in the suspected gifts-for-favors scheme involving Rechnitz, Jeremy Reichberg and top NYPD brass, sources have told The Post.

Rechnitz has ties to the Platinum Partners hedge fund through one of its initial investors, Murray Huberfeld.

Huberfeld has a shady past that includes pleading guilty to a misdemeanor in 1992 for having a stand-in take his brokerage licensing exam and, with a business partner, getting fined $4.7 million by the Securities and Exchange Commission in 1998 for illegally selling restricted stock.

Rechnitz isn’t listed as an official marketer for Platinum and it was unclear whether he got a referral fee over the union’s investment, the Journal reported.

According to its website, Platinum manages more than $1.3 billion spread across “multiple funds.” It claims to be generating steady profits, but last year blocked clients from withdrawing money from one of its funds, sources told the Journal.

hedge-crimeJona Rechnitz, a Brooklyn real-estate investor who is a focus of a federal corruption probe, referred New York’s correction officers’ union to Platinum Partners.

Norman Seabrook, president of the New York City Correction Officer’s Benevolent Association, invested at least $10 million of the union’s money with Platinum Partners.

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