A jury convicted Norman Seabrook, 58, of honest-services wire fraud and conspiracy after a retrial last year. Federal prosecutors said he invested $20 million of union money in a now-defunct hedge fund in exchange for kickbacks.
The former head of New York City’s jail officers union was sentenced to more than four years in prison for what federal prosecutors said was accepting bribes in exchange for steering millions of dollars of union money into a risky hedge fund, the Wall Street Journal reports. A jury convicted Norman Seabrook, 58, of honest-services wire fraud and conspiracy after a retrial last year. Federal prosecutors said Seabrook invested $20 million of union money in the now-defunct hedge fund Platinum Partners in exchange for kickbacks. In 2014, prosecutors said, Mr. Seabrook accepted $60,000 in cash in a Salvatore Ferragamo bag.
In addition to the 58-month sentence, U.S. District Judge Alvin Hellerstein ordered Seabrook to pay $19 million in restitution. Prosecutors said that when the hedge fund collapsed, union members lost $19 million of the $20 million Seabrook had invested. Lawyers for Seabrook asked the judge to take his achievements into account. “What is beyond dispute is that, in his 20 years as COBA President, Norman Seabrook dedicated himself to his officers, fought on their behalf, and achieved extraordinary results for them,” his lawyers wrote.