Former correction-union boss Norman Seabrook was a “dictator” who as soon as invested $5 million of members’ cash right into a dangerous hedge fund with out board approval, a former colleague testified at his bribery trial on Friday.
Michael Maiello, treasurer of the Correction Officers’ Benevolent Affiliation, informed the Manhattan federal jury Seabrook typically spent cash with out consulting the remainder of the board.
This apply got here to a head in June 2014 when Seabrook transferred $5 million of the funds’ working bills — reserved for issues like payroll and lease — into hedge fund Platinum Companions with out telling a soul, Maiello stated.
Seabrook stands accused of directing a complete of $20 million to the hedge fund, which has since filed for chapter, in change for $60,000 in bribes from hedge-fund government Murray Huberfeld.
The board authorised the primary $10 million funding into Platinum. However Maiello stated he solely discovered concerning the second $5 million funding after the financial institution referred to as him for his signature.
“I used to be simply — excuse the language — pissed off and mad,” Maiello stated.
Seabrook and Huberfeld, who met by means of de Blasio donor Jona Rechnitz, resist 20 years in jail if convicted.