The Seabrook Connection – Investments Gone…?

Thompson

HAMLET PERALTA AND PLATINUM PARTNERS – the Norman Seabrook Connection

It has been reported that Norman Seabrook invested the New York City’s Correction Officers Benevolent Association’s funds with Hamlet Peralta, who has recently been charged in a $12M Ponzi Scheme involving Jona Rechnitz and Jeremy Reichberg. R&R claim to have been duped. We are not so sure.  Norman Seabrook, as reported in this article, has also been investigated for using his position to enrich himself. If Seabrook has an R&R connection either through Peralta or otherwise remains to be seen and the focus on this article is simply Seabrook’s investments.

We are researching to see if R&R shared these investments with him also.

LostMessiah, April 13, 2016

 

The top-performing hedge fund manager that’s too hot for big money to handle

Guided by Mark Nordlicht, Platinum Partners has racked up returns that are the envy of the industry. But its winning strategy – lending to troubled companies – carries risks that many institutional investors would just as soon not take.

 

“The 47-year-old Nordlicht lives an unflashy life in suburban Westchester County with his wife and children, usually driving himself to and from work at Platinum’s sleek midtown Manhattan offices.

He has strong ties in the New York-area Jewish community, the source of some of his funds’ investors. These include, according to public tax filings for 2014, a charitable trust set up by day-trading pioneer Aaron Elbogen, who was fined $1.4 million for illegal trading and bookkeeping while the chief executive of Datek Securities Corp; the Century 21 Associates Foundation, led by department store executive Raymond Gindi; and the SFF Foundation, a non-profit controlled by the Schron family, known for its real estate investments. All declined to comment or did not respond to requests for comment.

Nordlicht has enriched his investors with his focus on higher-risk debt that can yield far more than traditional fixed-income investments. And after years of near-zero interest rates, it’s a strategy increasingly sought out by big, otherwise conservative institutional investors hungry for higher yields.

Still, many big money investors who have looked at Platinum have walked away. Cambridge Associates, which counsels some of the world’s largest pension funds and endowments, recommended to a client around 2010 that it not invest with Platinum and has not changed its stance on Nordlicht’s firm since then, according to people familiar with the situation.

In an email, Cambridge said it does not “discuss specific investment managers.” It added: “We can say that we take our due diligence process very seriously.”

Among institutional investors that have considered putting money with Platinum but ultimately chose not to are the endowment of Yeshiva University, which is the alma mater of several Platinum employees, and large hedge fund allocator GAM, according to people familiar with the institutions.

One institutional investor that did get in is New York City’s Correction Officers’ Benevolent Association, according to two people familiar with the situation. The New York Times reported in June last year that Norman Seabrook, the union’s leader, was under investigation by the U.S. Department of Justice for potentially using his position to enrich himself. A broad subpoena from prosecutors requested that the union supply information related to Platinum, but the connection was not clear, according to the report.

A spokesman for the union declined to comment. The Justice Department and Seabrook did not respond to requests for comment.”

To read Lawrence Delevingne’s Reuters Investigates article in its entirety click, here.

11 thoughts on “The Seabrook Connection – Investments Gone…?

  1. http://www.marknordlicht.com/

    “Mr. Nordlicht boasts a long list of entrepreneurial, as well as successful endeavors.”

    “According to Mark Nordlicht, charity is not only considered a practice, it is also a virtue. There are two types of charity givers that exist, those who randomly select an organization to donate to and those who express their kindness and caring by donating to a cause they cherish. Mr. Nordlicht has a passion for giving to various organizations he has close ties with.”

    “Mark Nordlicht’s charitable giving has enabled him to help fight against poverty, disease, hunger and even genocide globally.”

    Oh my God he is just the most wonderful person in the world, except for maybe Shlomo Rechnitz.

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  2. THERE’S NOT ENOUGH TIME IN THE DAY TO DISCUSS NORDLICHT, HUBERFELD, BODNER

    BUT HE GIVES LOTS OF CHARITY…

    In Rothstein Fiasco, Fraud Begets Fraud

    http://www.browardpalmbeach.com/news/in-rothstein-fiasco-fraud-begets-fraud-6444645

    When Scott Rothstein was spending millions in his bid to take over Fort Lauderdale, his many doubters strongly suspected that the money couldn’t possibly be legitimate. And the question heard ’round the city was: Where is this guy getting his money?

    There was talk of Russian Mob connections and computer porn. Some suspected the Italian Mafia. Now we know a whole lot of it came from a similarly dubious source, New York hedge funds.

    Hedge fund owner George Levin was the key money source, with his Banyon fund pumping hundreds of millions into Rothstein’s scheme. When Rothstein’s Ponzi scheme imploded and he fled to Morocco, Levin held a major meeting of investors at his office across from the Galleria Mall on Sunrise Boulevard.

    Many of them, we have since learned, have dubious histories. Levin himself ran a model car company that was hit with a federal fraud conviction. His right-hand man at Banyon, Frank Preve, is a convicted felon. Mel Lifshitz is a disbarred attorney and convicted tax evader. Then you have hedge fund owner Murray Huberfeld, a serial SEC violator whom I wrote about last week.

    Now let me introduce you to the reported $50 million man, Meir “Mark” Nordlicht, who has business ties to Huberfeld and who has also been alleged to have been involved in a previous fraud. A big one. Nordlicht, remember, was reportedly present at that meeting of panicked Rothstein investors on November 1.

    Nordlicht runs a $500 million New York hedge fund called Platinum Management and, like Huberfeld, put his money into Rothstein’s scheme via loans to Levin’s Banyon fund. Levin told me earlier this week that he was introduced to both

    Nordlicht and Huberfeld through a broker and had never done business with them in the past. Levin wouldn’t elaborate further.

    To understand Mark Nordlicht, you must first know his father, Jules Nordlicht. Back in 1978, Jules Nordlicht pleaded guilty on a federal charge of conspiracy to create $27 million in fraudulent tax losses through manipulation of market for crude oil futures. It’s not clear what sentence he served, but it is crystal-clear that his criminal conviction didn’t keep him out of the high-flying commodity trading business.

    Jules Nordlicht went on to become a major shareholder at the New York Mercantile Exchange (NYMEX), the largest commodity futures exchange in the world. His son, Mark, followed in his footsteps, becoming a wheeler-dealer in the dicey energy futures market.

    Mark Nordlicht became chairman of Optionable Inc., a company he founded that had a rather Rothstein-like implosion in 2007 amid allegations of fraud and insider trading. While the company was still flying high in January 2007, Nordlicht and two other executives, including Optionable CEO Kevin Cassidy, sold 10.2 million shares of the company to NYMEX for $29 million. Mark Nordlicht personally accounted for seven million of those shares, which he sold for a whopping $18,830,000.

    In May, the wheels fell off of Optionable. It was learned at that time that CEO Cassidy had felony credit card and tax evasion convictions in his past that he didn’t disclose. On top of that, Optionable had a series of dubious dealings with a broker named David Lee at the Bank of Montreal that caused huge losses for the bank. Lee and Cassidy were close friends.

    So what happens? NYMEX announced that it would compete with Optionable rather than join it and declared an almost total writedown on its Optionable investment. Optionable stock plunged, and the company was hit with SEC actions and class action lawsuits.

    One lawsuit filed against Mark Nordlicht explains the “bogus” relationship NYMEX and Optionable this way: “[A] key reason the unusual NYMEX transaction went forward was the influence of Jules Nordlicht, a NYMEX shareholder with significant holdings and — lo and behold — also an ex-con and the father of Mark Nordlicht. Nordlicht Senior, who had liquidated 2.19 million shares in Optionable’s IPO and therefore had no vested interest in the future of his son’s Company, (except to see thathis son made as much illegal profits as possible), also pleaded guilty to price rigging the crude oil market in 1978.”

    Needless to say, Optionable was a major business scandal, and the stock plummeted to a few cents, where it remains today. But Nordlicht has never been named personally in SEC actions, despite the fact that he was chairman of the company when the apparent fraudulent activity occurred. Today, he remains in charge of his $500 million hedge fund that apparently sank $50 million into Rothstein’s scheme.

    The Nordlicht family’s connection to fellow Levin/Rothstein investor Huberfeld is clear. They share a New York address, run similar hedge funds, and have invested in the same businesses. In fact, when Huberfeld was subpoenaed in the infamous Solomon Dwek case, it was in connection with his activities with Nordlicht’s Platinum fund. Another interesting observation: The hedge funds of Nordlicht and Huberfeld — which together reportedly control nearly $1 billion — both share names with types of American Express cards.

    The question hanging in the air is where have Nordlicht and Huberfeld gotten all that money to invest? Considering their histories, it would seem any sane and rational investor wouldn’t get near either of them. What is the original source of all this crazy money that found its way into Rothstein’s Ponzi and enabled the lawyer to turn Fort Lauderdale on its head?

    I’ll close with an observation: The Securities and Exchange Commission is an abject failure of a regulatory agency on par with the Florida Ethics Commission. Unfortunately, the SEC is a whole lot more important to America and the world.

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  3. OH, GOD ANOTHER (SELF-ABSORBED, MEGALOMANIAC) WITH RECHNITZ WANNABE (SHLOMO THAT IS)

    Read this guy’s web site ( I mean, really, what normal person does such things?)

    http://www.marknordlicht.com

    EXCUSE ME WHILE I VOMIT…

    Mark Nordlicht Biography

    Mark Nordlicht, Chief Investment Officer of Platinum Partners Hedge Fund, brings 19 years of experience to the industry. Mr. Nordlicht boasts a long list of entrepreneurial, as well as successful endeavors.

    At the age of 20, Mark Nordlicht recognized that he was able to find the value in concepts many of his peers would consider far-reaching. Still today, it is this keen sense of worth which results in the basis to Mark Nordlicht’s business platform.

    After graduating from Yeshiva University, at age 22, Mr. Nordlicht became the youngest trader in the New York Cotton Exchange. His years of experience have certainly paid off well. Today, he is in charge of all asset allocation and risk management of Platinum Partners Hedge Fund.

    In 1991, Mr. Nordlicht launched Northern Lights Trading. He was the founder and general partner until the year 2000. Northern Lights Trading employed traders in natural gas, crude oil, coffee and cotton, gold and silver option trading pits.

    During 1997-2001, Mark Nordlicht became the managing partner and founder of West End Capital, located in New York.

    Mark Nordlicht’s Charitable Giving

    According to Mark Nordlicht, charity is not only considered a practice, it is also a virtue. There are two types of charity givers that exist, those who randomly select an organization to donate to and those who express their kindness and caring by donating to a cause they cherish. Mr. Nordlicht has a passion for giving to various organizations he has close ties with.

    When it comes to supporting an organization, Mr. Nordlicht believes it is very important to understand the meaning behind the practice of charitable giving. A person should not give because they have the means to give or they feel obligated, one should feel inspired to give.

    Some of Mark Nordlicht’s favorite charities includes: Sharsheret, SAR Academy, Kesharim, Chai Lifeline and Young Israel of New Rochelle. In addition, Mr. Nordlicht established the Dahlia and Mark Nordlicht Foundation. This organization has provided educational opportunities for many less fortunate children. Mark Nordlicht’s charitable giving has enabled him to help fight against poverty, disease, hunger and even genocide globally.

    View other organizations supported by Mark Nordlicht.

    Accolades and Awards

    Mark Nordlicht’s firms have received many recognitions and remarkable rankings on the Barron’s Hedge Fund 100.

    Liked by 1 person

  4. New York (August 30, 2011, 3:32 PM ET) — The Chapter 11 trustee overseeing Rothstein Rosenfeldt Adler PA’s liquidation filed a new, $40 million adversary suit Monday, targeting three hedge fund managers, their wives and related companies for capitalizing on Scott Rothstein’s $1.2 billion Ponzi scheme.

    The suit — which names Regent Capital Partners LLC; Murray and Laura Huberfeld; the Bodner Family Foundations and David and Naomi Bodner; husband and wife Mark Nordlicht and Dahlia Kalter; and SFS Capital Funding LLC — seeks to recover fraudulent transfers the defendants allegedly received from the law firm, through which Rothstein admitted running an elaborate Ponzi scheme.

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  5. ANOTHER SHINING EXAMPLE OF JEWISH ETHICS

    The main fund, Platinum Partners Value Arbitrage, has returned about 8 percent this year, according to the investor presentation. Nordlicht said that the fund has made good bets in biotechnology and on a planned chain of mini-marts in rural China. Another winner has been a startup electricity retailer called Agera Energy, he said.

    The investment connected with terminally ill patients shows the lengths Platinum will go to find a can’t-miss bet. Insurance companies were offering variable annuities — a type of guaranteed investment contract — with bonuses that only applied when the investor died. A broker approached Platinum in 2007 with an idea, according to the U.S. Securities and Exchange Commission: Find people who were near death and buy contracts with their names using the fund’s money. With the bonuses, the fund could earn 5 percent, risk-free, as soon as each person died.

    Platinum set up a company called BDL Group to invest in the annuities, eventually putting up more than $56 million, and Nordlicht brought in a friend to oversee the process, the SEC said in an administrative order. A rabbi in Los Angeles found the hospice patients and tricked them into providing their personal information so that BDL could take out annuities with their names, according to the SEC.

    Nordlicht’s friend, the rabbi and BDL agreed last year to pay about $4 million in settlements with the SEC, without admitting doing anything wrong. Neither Platinum nor Nordlicht were accused of wrongdoing.
    “We definitely were exploiting a loophole, but it was fully vetted by legal counsel,” Nordlicht said. “A principal-protected piece of paper backed by an A credit with an expected annualized return of 30 percent proved too difficult to resist for a risk-adjusted return hawk.”

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  6. “Nordlicht, as some may remember, was the founder of one of the biggest stock collapses of early 2007. A little OTC-BB gem called Optionable (OPBL). Optionable trades for 2 cents a share today, but in March 2007 peaked at $9.10. OPBL imploded when it was discovered that the CEO and co-founder Kevin Cassidy was a two time felon, having served time for credit card fraud (30 months starting in 1997) and tax evasion (6 months in 1993), and that the company had been hiding massive commodities trading losses.

    Optionable was founded not long after Kevin’s second release from prison, but clearly that did not bother his partner Mark. After all, Mark’s dad Jules Nordlicht had his own run in with the law in 1978, pleading guilty to a conspiracy count in regards to a plan to manipulate the oil futures market. You can read about that here.

    Mark personally cleared over $18mm from OPBL share sales before the implosion, but he just may have been out-conned. Turns out that Platinum was a huge investor in South Florida’s own Madoff-like Ponzi scheme. Platinum sunk $50mm into Scott Rothstein’s $1.2bn structured settlement con.”

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