A Platinum Reality – Has the Passage of Time Taught us Nothing? – 2005 NorCrown – Another Fraud

David Bodner, Murray Huberfeld and Charles Kushner – Enforcement Actions – Have we Learned Nothing?

People don’t change. Their moral compasses do not suddenly become righted. They don’t go from being serial fraudsters and morally bankrupt to charitable and altruistic. Opportunism is opportunism and that will not change, particularly as history has played out in regard to Murray Huberfeld, David Bodner and the rest of the Platinum Partners cast of characters. The scenarios of changed but the pattern of fraud has remained the same as has the ability to shield themselves from punitive consequences.

Murray Huberfeld has been credited with his “Philanthropy” but the money that he so “generously” gives away is nothing short of blood money garnered and obtained off the backs of his victims. As we see it, he is no altruist, he is an opportunist to the very core of his being.

David Bodner, while cleverly managing to remain in the shadows, is no less the player in the fraud game and contemptible. In our view, he has simply managed to hide it in a level of polish lacking in Huberfeld. 

Charles Kushner would need far more than one article to analyze. Unlike Huberfeld and Bodner, he has paid some dues for his reprehensible financial dealings. We must admit that we do find it somewhat questionable that Kushner’s links to Trump did not get addressed during the most recent presidential election…. a discussion for another day, but certainly the basis for significant speculation.

Huberfeld, while being blatant in his financial abuses, has managed to shield himself and his money, from those whom he has defrauded for years. He likely has an arsenal of cash and diamonds hidden for him and his family in trusts and other vehicles that have loopholes making them untouchable. 

Is it not about time that we look to the patterns of history to unwind the events of today?

2005 

Joint Press Release Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation

For immediate release February 25, 2005
Federal Reserve Board and FDIC Announce Written Agreement with Two Individuals in NorCrown Trust Matter

The Federal Reserve Board and the Federal Deposit Insurance Corporation announced on Friday 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, N.J., 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.

A copy of the Written Agreement is attached.

Attachment (55 KB PDF)

Media Contacts:
FDIC Frank Gresock 202-898-6634
Federal Reserve Dave Skidmore 202-452-2955

2005 Enforcement actions

 

The Agreement:

 

UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
WASHINGTON, D.C.
)
Written Agreement re THE NORCROWN TRUST, )
LIVINGSTON, NEW JERSEY, an )
unregistered bank holding company that controls ) FRB Dkt. Nos. 05-010-WA/RB-I2
NORCROWN BANK ) 05-010-WA/RB-I3
LIVINGSTON, NEW JERSEY )
(An insured State Nonmember Bank) ) FDIC Dkt. No. 04-271WA
)
by and among )
)
DAVID BODNER, and MURRAY HUBERFELD, )
)
and )
)
THE FEDERAL RESERVE BANK OF )
NEW YORK, )
)
FEDERAL DEPOSIT INSURANCE CORPORATION )
WASHINGTON, D.C. )
)
WHEREAS, in recognition of their common goal to maintain the safety and soundness of
bank holding companies and insured depository institutions, the Federal Reserve Bank of New York (the “Reserve Bank”) and the Federal Deposit Insurance Corporation (“FDIC”) have mutually agreed to enter into this Written Agreement (“Agreement”) with David Bodner (“Bodner”) and Murray Huberfeld (“Huberfeld”);

WHEREAS, this Agreement pertains to allegations that Bodner and Huberfeld did not seek the prior approval of the FDIC pursuant to Section 19 of the Federal Deposit Insurance Act(the “FDI Act”)(12 U.S.C. § 1829) before an investment was made that became a beneficial interest in the name of the Laura Huberfeld and Naomi Bodner Partnership of more than percent in the NorCrown Trust, Livingston, New Jersey (“NorCrown”), 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;

WHEREAS, the FDIC has issued a Statement of Policy Pursuant to Section 19 of the
Federal Deposit Insurance Act, 63 Fed. Reg. 66177 (December 1, 1998), which Statement may be revised from time to time or withdrawn;

WHEREAS, this Agreement is being executed in accordance with the Rules Regarding
Delegation of Authority of the Board of Governors of the Federal Reserve System (the “Board of Governors”), specifically 12 C.F.R. § 265.11(a) (15), and the Reserve Bank has received the prior approval of the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board of Governors to enter into this Agreement with Bodner and Huberfeld; and

WHEREAS, the FDIC is authorized to enter into this Agreement pursuant to Section 9 of
the FDI Act, 12 U.S.C. § 1819(a) (Seventh).

NOW, THEREFORE, Bodner and Huberfeld each respectively agree with the Reserve
Bank and the FDIC as follows:

1. Bodner and Huberfeld agree that, except with the prior written consent of the FDIC in accordance with Section 19 of the FDI Act, each shall not (a) become, or continue as, an institution-affiliated party (as defined in Sections 3(u) and 8(b)(3) of the FDI Act (12 U.S.C. §§ 1813(u) and 1818(b)(3)), with respect to any insured depository institution (as defined in Section 3(c)(2) of the FDI Act, (12 U.S.C. § 1813(c)(2)) or any depository institution holding company (as defined in Section 3(w)(1) of the FDI Act (12 U.S.C. § 1813(w)(1)); (b) own or control, directly or indirectly, any insured depository institution or any depository institution holding company ; or (c) otherwise participate, directly or indirectly, in the conduct of any  insured depository institution or depository institution holding company.

2. All communications regarding this Agreement shall be addressed to:
(a) David Bodner
152 West 57th Street (54th floor)
New York, NY 10019
with a copy to:

Eliot Lauer
Curtis Mallet-Prevost, Colt & Mosle, LLP
101 Park Ave.
New York, New York 10178

(b) Murray Huberfeld
152 West 57th Street (54th floor)
New York, NY 10019
with a copy to:
Eliot Lauer
Curtis Mallet-Prevost, Colt & Mosle, LLP
101 Park Ave.
New York, New York 10178

(c) William Rutledge
Executive Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, New York 10045

(d) Christopher J. Spoth
Regional Director
Federal Deposit Insurance Corporation
20 Exchange Place
New York, New York 10005

3. This Agreement, and each and every provision hereof, is binding individually
upon Bodner and Huberfeld, respectively, and shall remain fully effective and enforceable until Jan—12—2005 OT:OOpm From—CURTIS MALLET PREVOST COLT AND MOSLE LLP +2126961934 T—024 P.005/005 F—021 expressly stayed, modified, terminated or suspended in writing by the Reserve Bank and the
FDIC.

4. This Agreement is a “written agreement” for the purposes of section 8 of the FDI
Act (22 USC. § 1818).

IN WITNESS WI-if R.EOF, the parties have caused this Agreement to be executed
as of the 18tiday 2005.

D&&L
Da%id Bodner
FEDERAL RESERVE BANK OF
NEWYO
By_
4′)i /l-<. Murray 1-luberfeld
FEDERAL DEPOSIT INSURANCE
CORPORATION
By
Lisa K, Roy
Associate Director
Division of Supervision and Consumer
Protection
William L. Rutle
Executive Vice President
Bank Supervision

FOR FURTHER READING:

For violations of:
Sections 8(b) and 8(e) of the Federal Deposit Insurance Act, Section 8(b) of the Bank Holding Company Act, pursuant to the Change in Bank Control Act (12 U.S.C. � 1817(j)(16)), and sections 8(e) & and 8(i) of the FDI Act (12 U.S.C. �� 1818(e) & (i)), assesses Civil Money Penalties, and Order of Prohibition (the �Joint Enforcement
Orders�) against The NorCrown Trust, an unregistered bank holding company…

Total fine: $12.5 Million

Norcrown & Kushner CMPs

_________________________
Time to build a bunker…

 

Fed fines NorCrown Trust

http://www.upi.com/Business_News/2005/02/10/Fed-fines-NorCrown-Trust/73461108061925/

WASHINGTON, Feb. 10 (UPI) — The U.S. Federal Reserve Board and the Federal Deposit Insurance Corp. Thursday took action against NorCrown Trust of Livingston, N.J.

The two government agencies also took action against NorCrown Bank’s former chairman, Charles Kushner, for alleged violations of banking laws.

NorCrown Trust and Kushner are required to pay civil penalties of 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 Fed and FDIC’s joint order also bans Kushner from working in the banking industry.

“The enforcement actions resolve allegations that 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 NorCrown Trust, which never received the Federal Reserve’s approval to become a bank holding company,” the Fed and FDIC said.

The Fed also issued an order requiring other individuals and trusts with relationships to The NorCrown Trust to cooperate in implementing the divestiture plan.

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