Hedge fund holding Norman Seabrook’s $20M investment is broke

Hedge fund holding Norman Seabrook’s $20M investment is broke

The embattled hedge fund holding a $20 million investment from the city’s correction officers’ union has finally admitted that it’s broke. The Platinum Partners’ Value Arbitrage fund filed for Chapter 15 bankruptcy protection in Manhattan bankruptcy court late Tuesday. The filing represents the nail in the coffin for the $20 million the union invested in Platinum, under the leadership of its ex-President Norman Seabrook. “Norman Seabrook severely impacted his members by making these frivolous investments that only benefited himself, and now the COBA is out $20 million dollars,” said Corrections Officers’ Benevolent Association member William Valentin, who triggered a federal probe into Seabrook with a lawsuit over the risky investment. “Smoke and mirrors seems to be the way of the COBA until the members get tired, and remove them,” he added. Seabrook was arrested in June and charged with taking $60,000 in kickbacks in a black Ferragamo handbag in exchange for funneling Corrections Officers’ Benevolent Association money into the high-risk hedge fund. Platinum founder Murray Huberfeld was also arrested and charged with bribing Seabrook to hand over COBA funds at a time when the NY hedge fund was desperate for cash. Both Seabrook and Huberfeld have pleaded not guilty. As The Post exclusively reported last month, Platinum’s flagship fund — which made up the bulk of its $1.3 billion in assets — had just $68,530 in cash at the end May, just before the arrests of Seabrook and Huberfeld. It was aggressively borrowing money anyway, including from the family of Jared Kushner, the husband of Ivanka Trump. On May 27, Kushner’s aunt and uncle loaned Platinum $10.5 million, documents obtained by The Post show. In total, the firm owes over $365 million to investors and credits, according to documents from its Cayman Islands liquidator, which was supposed to be responsible for paying people back. A Platinum spokesman declined to comment. A COBA spokesperson did not immediately return a request for comment. Chapter 15 is used for insolvency cases involving debtors and claimants in more than one country.

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