The Latest: US prosecutor blasts NYC jail guards union head

AP News
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Posted: Jun 08, 2016 1:53 PM

NEW YORK (AP) — The latest developments in the federal corruption case against the head of the nation's largest municipal jail guard union and a hedge-fund founder. All times EDT:

1:45 p.m.

A federal prosecutor says New York City's jail guards union leader had his own interests in mind when he made investment decisions about "the nest egg for thousands of hard-working civil servants."

Manhattan U.S. Attorney Preet Bharara (buh-RAH'-ruh) spoke Wednesday after the arrests of Norman Seabrook and Platinum Partners, L.P. hedge fund founder Murray Huberfeld.

A criminal complaint says Huberfeld used an intermediary to pay Seabrook an initial kickback of $60,000 in cash. In 2014, Seabrook directed a total of $20 million of union money to Platinum.

Union representatives did not immediately respond to comment requests.

There was no immediate information on an attorney who could comment on Huberfeld's behalf. An email to Platinum was not immediately returned.

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1 p.m.

Mayor Bill de Blasio says if federal corruption charges against New York City's jail guards union leader and a hedge fund founder are true, "it's disgusting" and "very, very sad."

De Blasio spoke Wednesday after the arrest of Norman Seabrook and Murray Huberfeld of Platinum Partners, L.P.

A criminal complaint says Huberfeld used an intermediary to pay Seabrook an initial kickback of $60,000 in cash. In 2014, Seabrook directed a total of $20 million of union money to Platinum.

Union representatives did not immediately respond to comment requests.

There was no immediate information on an attorney who could comment on Huberfeld's behalf. An email to Platinum was not immediately returned.

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9:05 a.m.

The head of the nation's largest municipal jail guard union is facing federal corruption charges along with a hedge-fund founder.

The FBI in New York says Norman Seabrook and Murray Huberfeld of Platinum Partners, L.P. were arrested early Wednesday.

A criminal complaint says that in return for kickbacks, Seabrook agreed to "direct transfers of millions of dollars" in union retiree benefit and operating funds to the hedge fund.

It says Huberfeld used an intermediary to pay Seabrook an initial kickback of $60,000 in cash. In 2014, Seabrook directed a total of $20 million of union money to Platinum.

Union representatives did not immediately respond to comment requests.

There was no immediate information on an attorney who could comment on Huberfeld's behalf. An email to Platinum was not immediately returned.

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8:40 a.m.

The head of the New York City correction officers' union is facing federal corruption charges along with a hedge-fund founder.

The FBI confirmed that Norman Seabrook and Murray Huberfeld, the founder of a New York-based hedge fund, were arrested early Wednesday.

A 17-page criminal complaint says Huberfeld "agreed to pay kickbacks to Seabrook." It says that in return, Seabrook agreed to "direct transfers of millions of dollars" in union retiree benefit and operating funds to a hedge fund operated by Huberfeld and others.

Union representatives did not immediately respond to requests for comment.

There was no immediate information on an attorney who could comment on Huberfeld's behalf.