How do Murray Huberfeld, David Bodner and their related Foundations always Escape Unscathed?
LostMessiah, August 8, 2016
Several months ago we authored an article about the Rothstein Ponzi scheme. Hidden within the depths of that scheme are Huberfeld, Bodner, their wives and related foundations. While it would have stood to reason that they would have been found guilty by virtue of their involvement, somehow they were made out to be the victims. We are still looking for explanations for that mystery.
In 2005, Charles Kushner was sentenced to two years in federal prison for, amongst other things: extortion, fruad SEC violations, banking and regulatory violations and other crimes. He was also fined $12.5M for violating federal laws when he purchased NorCrown bank almost 10 years earlier, in 1995.
Kushner pleaded guilty to 18 counts. He admitted to hiring prostitutes to seduce his brother-in-law, then sent the photos to his sister to prevent his brother-in-law from testifying against him. We will not even begin to address the moral bankruptcy of those tactics. But in our world, you just can’t make this stuff up.
Interwoven within the Kushner conviction however, we have highlighted in red below, is the involvement of Murray Huberfeld, David Bodner and their related foundations. Like many instances of wrongdoing that follow, Huberfeld and Bodner seem to escape unscathed while their business associates take the blame, pay fines or wind themselves up in jail.
We do not believe this is the first example of such a scenario but we are absolutely certain it is not the last.
We post this article and the information that follows to ask for help filling in missing links. We have been told by friends in the finance world that not only did the 2001 terrorist bombings of the World Trade Center end thousands of lives, but it also destroyed the records of an investment firm, Cantor Fitzgerald, which held secrets regarding Huberfeld and potentially Bodner. Whether or not this is the source of legend, remains to be seen.
We have been told in Jewish social circles that Huberfeld lives a gluttonously lavish lifestyle and at some point in the early 2000’s was quite relieved that those records burned, despite the tragedy that surrounded their destruction. We have been told that Huberfeld enticed investments by preying on the starstruck who were only so willing to invest in his strategies because they believed in him, much like Madoff’s investors felt about him.
We are asking for anyone who has information on the early years of Huberfeld’s and Bodner’s activities to please send them along to our gmail account. We are piecing together puzzles little-by-precious little. It is our hope to one day return some of the money to you, our readers, who lost money to Huberfeld, Platinum, the investments that came before. It is our hope to somehow dig up the evidence of the Ponzi schemes that remain buried within the ash and rubble that was once Cantor Fitzgerald – World Trade Center branch.
We recognize that Huberfeld’s supporters will say that he gives so much to charity now. He does so much good with his money, how can we fault him for what he did wrong. For those of you who want to voice those comments, you may as well save them. If he stole from his friends to give to other friends to advance his causes, he does not have a shred of decency in him. We do not believe that one can commit crimes of that magnitude and find redemption by giving it to charity.
TRENTON — Multimillionaire real estate developer Charles Kushner, who faces two years in federal prison for extortion, tax fraud and other crimes, was ordered Thursday to pay at least $12.5 million in fines for violating federal laws when he bought NorCrown bank nearly a decade ago.
A joint enforcement action by the Federal Reserve and the Federal Deposit Insurance Corp. also banned Kushner from ever owning or participating in banking business in the future and requires him to sell Livingston-based NorCrown Bank by October 2005.
The agreement announced Thursday finalized negotiations between Kushner and federal regulators that began in August, shortly after Kushner pleaded guilty in U.S. District Court in Newark to 18 criminal charges.
Kushner, 50, is scheduled to be sentenced in early March for his efforts to thwart an ongoing federal probe into his campaign contributions. The developer admitted he hired a prostitute to seduce an associate — his brother-in-law — and sent photos of the sexual encounter to the associate’s wife, Kushner’s sister, to keep him from testifying.
Kushner also faces more than $1 million in fines related to those criminal charges.
As a nationally known philanthropist, Kushner gave millions to Jewish causes. Also, Kushner donated more than $5 million to New Jersey Democrats in the past decade and was former Gov. James E. McGreevey’s top contributor.
President of Kushner Cos., a network of real estate companies worth over $3 billion, Kushner expanded into the banking business in 1996. But the federal government says that when he did, Kushner failed to properly disclose details on the NorCrown Trust, a holding company he established that controlled 99 percent of the bank.
Thursday’s agreement says Kushner is the sole trustee of the NorCrown Trust. He left the bank itself and transferred day-to-day operations of the real estate company when he pleaded guilty in August.
The agreement announced Thursday fines NorCrown Trust $10.75 million for the disclosure discrepancies; the penalty could rise to $13 million if the bank is not sold within four months, with an additional $800,000 tacked on for each 30 days that elapses after six months. As an individual, Kushner faces a $1.75 million fine; this jumps to $3.2 million after five months and can increase $200,000 a month after six months.
“The FDIC rarely gets into six figure (fines), let alone seven or eight,” said spokesman David Barr of the FDIC. “It’s not a record-breaker, but it’s big.”
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The Federal Reserve Board and the Federal Deposit Insurance Corporation announced on February 10, 2005, the issuance of joint enforcement actions against The NorCrown Trust and Charles Kushner.
The NorCrown Trust controls NorCrown Bank, Livingston, New Jersey. Charles Kushner is the trustee of The NorCrown Trust and a former chairman of NorCrown Bank.
The joint order requires that The NorCrown Trust and Charles Kushner pay civil money penalties totaling at least $12.5 million, to divest The NorCrown Trust’s shares of NorCrown Bank, and to transfer the shares to a voting trust administered by an independent trustee until the divestiture is completed. The joint order also prohibits Mr. Kushner from participating in the conduct of the affairs of any financial institution or holding company.
The Federal Reserve Board also issued an order upon consent under the Bank Holding Company Act requiring other individuals and trusts with relationships to The NorCrown Trust to cooperate in implementing the divestiture plan.
The enforcement actions resolve allegations that The NorCrown Trust and Charles Kushner violated the Change in Bank Control Act, the Bank Holding Company Act, or both, in a series of transactions from 1995 through 1997, that led to the formation of The NorCrown Trust, which never received the Federal Reserve’s approval to become a bank holding company. The joint order also resolves allegations of violations of Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks) and sections 23A and 23B of the Federal Reserve Act relating to transactions with NorCrown Bank.
The Federal Reserve Board and the Federal Deposit Insurance Corporation announced on February 25, 2005, the execution of a joint written agreement by and among the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation with David Bodner and Murray Huberfeld. The written agreement requires that Mr. Bodner and Mr. Huberfeld comply with the prior approval requirements of section 19 of the Federal Deposit Insurance Act.
The agreement pertains to allegations that Mr. Bodner and Mr. Huberfeld did not seek the prior approval of the FDIC under section 19 of the Federal Deposit Insurance Act before an investment was made in what became The NorCrown Trust, an unregistered bank holding company that owns more than 99 percent of the voting shares of NorCrown Bank, Livingston, New Jersey, an insured state nonmember bank.
This joint written agreement follows joint enforcement actions announced on February 10, 2005, against The NorCrown Trust and Charles Kushner.
|Title Annotation:||Announcements; Federal Deposit Insurance Corp.|
|Publication:||Federal Reserve Bulletin|
|Article Type:||Brief Article|
|Date:||Mar 22, 2005|
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