Hedge Funds

Once-highflying hedgie Murray Huberfeld gets snared in union corruption probe

Tyrone Siu | Reuters

A former New York hedge fund manager has been charged along with a prominent union official in a case involving alleged kickbacks and a pension fund, according to reports.

Murray Huberfeld faces charges for events that allegedly took place while he was affiliated with Platinum Partners, a $1.3 billion firm known for risky investment strategies that often paid off handsomely.

Federal officials charged Huberfeld and Norman Seabrook, president of the New York's Correction Officers' Benevolent Association, in the case. They allege that Seabrook took kickbacks from Huberfeld's Platinum Partners in exchange for directing some $20 million in wire transfers from the union's pension fund to the firm.

Both were charged with honest services wire fraud, according to the New York Daily News, which cited sources and court papers. The union is the largest municipal jail union in the United States, according to the News.

Huberfeld no longer helps run Platinum, according to a Reuters profile of the firm in April that detailed the firm's risky strategies.

Neither Huberfeld, Seabrook nor representatives at Platinum Partners responded to requests from CNBC.com for comment.

Read the full Daily News report on the charges here.