The Jewish Voice | DEСEMBER 23, 2016 by Mike Kurov

NEW YORK

The Jewish Voice

DEСEMBER 23, 2016

PAGE 3

Platinum Partners Charged with Largest Fraud Plot Since Madoff; 7 Top Execs Arrested Continued from page 1 the overvaluation of their largest assets, which eventually led to Nordlicht and his co-conspirators operating Platinum like a Ponzi scheme, where they used loans and new investor funds to pay off existi g investors.” “As investors sought redemptions, the defendants engaged in numerous improper measures in an attempt to meet redemption requests, including taking out high-interest rate loans, commingling monies among funds and raising money from new investors through fraudulent misrepresentations,” said Andrew J. Ceresney, the director of the S.E.C.’s enforcement division. The indictment is just the latest in a series of legal imbroglios for Platinum Partners, which was founded in 2003. In June of this year, Murray Huberfeld, a part owner of Platinum was arrested and charged in a kick-

back scheme involving pension funds in New York State. He was charged with paying $60,000 in bribes to the president of the New York City Correction Office s Benevolent Association, Norman Seabrook in order to ensure Mr. Seabrook investing COBA’s pension and dues money from its members into his fund. At that time, Platinum announced that it will close down its main fund as a result. COBA had invested about 20% of its annuity into the fund under Norman Seabrook’s leadership, even though Platinum had a risky reputation at the time. The Federal Bureau of Investigation had raided the offices of Platinum Partners in June in order to more fully inspect their hard-to-value liquid assets. Platinum Partners has had to continually ensure its members and investors that their assets are solid and nobody’s money is at risk. Th y’ve pointed out, for example, that there was only one

ing Orthodox Jewish causes, through the Huberfeld Family Foundation. The e have included shuls that are part of the Chabad Lubavitch movement. He has also been a member of the Simon Wiesenthal Center. While, at the same time, he was convicted of a misdemeanor in 1992 for having someone else take his Series-7 broker-licensing exam for him. For that he paid a $5,000 fine and was sentenced to two years’ probation. In 1998, Mr. Huberfeld and his partner David Bodner, handed over almost $5 million in profits ING Investment Management Mark Nordlicht, founder and interest in order to settle alveteran Uri Landesman was of Platinum Partners had legations in court that they sold hired in 2010 as part of an continually delivered 513,000 shares of secret stock. effort to burnish Platinum’s extraordinary returns to An additional $50,000 civil penimage and woo institutional investors in Platinum Partners’ alty had to be paid to the Securiinvestors. two main funds. ties and Exchange Commission. In October of this year, Plat“down month” nine years ago employees that their money is inum Partners filed for Chapter for them. The new president of “safe.” Murray Huberfeld has a 15, a section of the U.S. Code the Correction Officers Benevolent Association, Elias Husamu- complicated past. He had made involved with international indeen has had to send out a letter large donations in the millions solvency. At issue is the fund’s promising the members and of dollars to charity, includ- legal operations in the Cayman

In October of this year, Platinum Partners filed for Chapter 15, a section of the U.S. Code involved with international insolvency Islands It turns out that Platinum Partners has “severe and substantial liquidity problems” according to two Cayman Island liquidators who are investigating the hedge funds assets in the Caymans. Also cited as issues are the frequent investigations by the U.S. Securities and Exchange Commission and Justice Department, as well as unpaid bills mounting into the hundreds of millions. Despite Platinum’s heavy play in the media, the fund appears to have mostly trafficked in obscure public and private See Platinum Partners Charged , page 37

Grand Juries Hear Testimony in DeBlasio Fundraising Probe; Mayor Fined $48K So Far By: Ilana Siyance

n Thursday December 15, the New York City Campaign Finance Board fined Mayor Bill de Blasio nearly $48,000 for campaign fin nce violations and inappropriate spending during his 2013 bid for mayor. Shortly after, the City Council passed a bill to limit the activities of outside nonprofit political groups, as reported by the New York Times. The bill is directly referring to Mr. de Blasio’s nonprofit political group entitled One New York, created in 2013, which is now the focal point of state and federal inquiries. For the past few months Mr. de Blasio has been on the defense insisting that he has done nothing wrong in his fund-

raising for the One New York campaign. On Tuesday, when asked if he would sign the bill he responded, “I’m perfectly comfortable signing the bill. I’m only acknowledging that it became a big distraction even though everything was done properly.” The bill prohibits donations in excess of $400 from lobbyists or those who do business with the city to nonprofit groups controlled by local elected officials or members of their staff, and would require donations to be disclosed. Mr. de Blasio’s nonprofit group willingly disclosed receiving over $4 million in donations, including hefty contributions from lobbyists, unions and companies doing business with the city. In 2013, Mayor de Blasio offered the same approach, solid

city’s stringent limits, had been late with fili gs, and spent money that should not be considered campaign expenses. The expenses in question include $550 for makeup on election night television appearances by Mr. de Blasio and his family; $298 for a fli ht to Washington for his son, Dante, to attend a 2010 rally; and over $116,000 in postelection payments to Hilltop Public Solutions, a public relations fi m that helped start the Campaign for One New York. Two separate Manhattan grand juries are now hearing Two separate Manhattan grand juries are now hearing testimony for federal and state criminal investigations into Mayor testimony for federal and state criminal investigations into de Blasio’s campaign fund-raising. It is speculated that the trial Mayor de Blasio’s campaign may possibly result in criminal charges against the mayor or his fund-raising. It is speculated closest aides. that the trial may possibly rein asserting that he was abiding board alleged that his campaign sult in criminal charges against by the law, when the fin nce had accepted donations over the the mayor or his closest aides.

The investigation will decide whether there was a violation of state election law, when hundreds of thousands of dollars were raised through three upstate county committees and channeled to Democratic candidates during the party’s futile bid to gain control of the Senate in 2014. Th ugh grand jury hearings are held confide tial, according to the NY Times, those in question may include Emma Wolfe, Mr. de Blasio’s top political aide; Ross A. Offinger, the Mayor’s previous campaign fin nce director; and Josh Gold, a union political operative, all of whom will deny any wrongdoing. Mr. de Blasio said he has not been asked to stand on trial and has defended the members of his administration.

Former Bklyn DA Charles Hynes Cleared of Federal Corruption Charges By Hadassa Kalatizadeh

n Friday the 16th of December, former Brooklyn District Attorney, Charles Hynes, was cleared of all charges in a federal corruption trial, as reported by the NY Daily News. Mr. Hynes, 81, was suspected of using more than $200,000 in money seized from criminals, to pay his media consultant Mortimer Matz for political work. Brooklyn federal prosecutors probed Hynes after a Department of Investigation report declared that Mr. Matz was Hynes’ campaign adviser in his 2013 re-election bid. Federal prosecutors have now decided not to pursue criminal charges. “We have concluded that there is in-

INDEX

served as a media consultant to Hynes from 2002 to 2013, was also cleared of any wrongdoing. “Based on an ill-informed, controversial, confli ted, and even undated and unsigned DOI report issued in February 2014, Morty Matz’s name has been unfairly and baselessly tarnished,” said Matz’s lawyer, Richard Greenberg. “It is a great day for Morty and NYC that his impeccable reputation as been restored.” Mr. Hynes, a Democrat, served as the Kings County’s DA from 1990 until the 2013 Former Brooklyn District Attorney, Charles Hynes, was cleared of Charles Hynes, a Democrat, served as the Kings County’s DA re-election primary, which he all charges in a federal corruption trial from 1990 until the 2013 re-election primary, which he lost to lost to Democratic challengDemocratic challenger Kenneth Thompson. Mr. Thompson won er Kenneth Th mpson. Mr. suffici t evidence at this time “Accordingly, our investigation the election and served as the next DA until this past October, Th mpson won the election and to support fili g federal crim- is closed.” when he died of cancer at the age of 50. served as the next DA until this inal charges,” wrote Assistant Mr. Hynes’ lawyer, Sean Hapast October, when he died of U.S. Attorney James D. Gatta ran, welcomed the verdict say- fide t that this would be the end his moral and ethical duties.” in a letter sent to Hynes’ lawyer. ing, “We have always been con- result, as Joe faithfully abided Mr. Mortimer Matz, 92, who cancer at the age of 50. Arts and Culture Book Review Business and Technology Classified

22 21

Editorial

Israel

Letters to Editor

Education

Jewish Features

National

31 48

Health

Kosher Recipes

New York

International

Legal Notices

News in Review

Op-Ed Parsha Special Features Travel War on Terror

19 35 27 41 23