Key Takeaways
- • Murray Huberfeld and convicted police-briber Jeremy Reichberg pitched the NYPD Captains' Endowment Association (CEA) on an investment in Platinum Partners hedge fund in May 2015, with assistance from donor Jona Rechnitz, but the union declined participation.
- • Huberfeld was sentenced to 30 months in prison for paying a $60,000 bribe to Norman Seabrook, then-president of the Correction Officers' Benevolent Association, in exchange for a $20 million pension fund investment in Platinum Partners that resulted in substantial losses.
- • The CEA explicitly rejected the Platinum investment citing lack of transparency and daily asset valuation compliance with organizational investment policy guidelines; Union President Roy Richter reported the episode to federal authorities.
- • Platinum Partners subsequently went bankrupt, with most of the $20 million COBA investment lost; Huberfeld repaid $5.5 million of the union's losses prior to sentencing.
- • The rejected CEA pitch demonstrates the broader scope of corruption efforts by Huberfeld and Reichberg within NYPD leadership, involving multiple union officials and prompting FBI investigation across 1 Police Plaza.
Summary
Murray Huberfeld, the hedge fund fraudster at the center of a major NYPD corruption probe, and convicted police-briber Jeremy Reichberg pitched the Captains' Endowment Association on investing in Platinum Partners in May 2015, according to sources cited by the New York Daily News. The presentation, arranged with assistance from Mayor de Blasio donor Jona Rechnitz, took place at Platinum's Midtown offices and was attended by Deputy Inspector James Grant and Deputy Chief Michael Harrington, among other attendees.
The CEA, led by President Roy Richter, declined the investment opportunity. Richter stated in a formal response that the proposed investment "did not meet the criteria for transparency and daily asset valuation as required by our organization's investment policy guidelines and did not merit further evaluation." Richter subsequently reported the meeting and sales pitch to investigating authorities. The union's rejection of the Platinum investment stands in stark contrast to the Correction Officers' Benevolent Association's decision to commit $20 million to Huberfeld's fund—money that would largely be lost when Platinum went bankrupt.
Huberfeld's involvement with Seabrook, COBA's then-president, resulted in serious criminal consequences. Huberfeld was sentenced to 30 months in prison after pleading guilty to conspiring to commit wire fraud related to funding a $60,000 bribe payment to Seabrook in exchange for the $20 million COBA investment. Prior to sentencing, Huberfeld repaid $5.5 million of the union's lost funds. Huberfeld's attorney, Henry Mazurek, stated that his client had no memory of the CEA sales pitch.
The episode illustrates the depth of corruption efforts by Huberfeld and Reichberg within NYPD leadership. Rechnitz reportedly attempted to pitch union officials across multiple organizations. Deputy Inspector Grant was acquitted at trial of taking bribes, while Deputy Chief Harrington received a two-year probation sentence for misusing police resources. The rejected CEA investment proposal underscores how institutional safeguards and compliance-focused governance—in this case, the union's investment policy requirements—can serve as a defense against fraud schemes targeting pension assets.
The CEA, led by President Roy Richter, declined the investment opportunity. Richter stated in a formal response that the proposed investment "did not meet the criteria for transparency and daily asset valuation as required by our organization's investment policy guidelines and did not merit further evaluation." Richter subsequently reported the meeting and sales pitch to investigating authorities. The union's rejection of the Platinum investment stands in stark contrast to the Correction Officers' Benevolent Association's decision to commit $20 million to Huberfeld's fund—money that would largely be lost when Platinum went bankrupt.
Huberfeld's involvement with Seabrook, COBA's then-president, resulted in serious criminal consequences. Huberfeld was sentenced to 30 months in prison after pleading guilty to conspiring to commit wire fraud related to funding a $60,000 bribe payment to Seabrook in exchange for the $20 million COBA investment. Prior to sentencing, Huberfeld repaid $5.5 million of the union's lost funds. Huberfeld's attorney, Henry Mazurek, stated that his client had no memory of the CEA sales pitch.
The episode illustrates the depth of corruption efforts by Huberfeld and Reichberg within NYPD leadership. Rechnitz reportedly attempted to pitch union officials across multiple organizations. Deputy Inspector Grant was acquitted at trial of taking bribes, while Deputy Chief Harrington received a two-year probation sentence for misusing police resources. The rejected CEA investment proposal underscores how institutional safeguards and compliance-focused governance—in this case, the union's investment policy requirements—can serve as a defense against fraud schemes targeting pension assets.
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