Platinum Partners raided by federal agents amid dual investigations

Wed Jun 22, 2016 5:17pm EDT
 
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By Lawrence Delevingne

NEW YORK (Reuters) - Agents from the Federal Bureau of Investigation and the U.S. Postal Inspection Service raided the New York headquarters of hedge fund firm Platinum Partners Wednesday morning, according to a person familiar with the situation.

“We are in receipt of a search warrant from law enforcement and are fully cooperating. We look forward to resolving this on a timely basis,” Platinum said in a statement emailed by an external spokesman.

Kelly Langmesser, an FBI spokeswoman, confirmed a “law enforcement action” was undertaken at the hedge fund firm’s Manhattan office.

Both Platinum and the FBI declined further comment. The U.S. Postal Inspection Service did not immediately respond to a request for comment.

Platinum, led by Mark Nordlicht, previously received a subpoena from the U.S. Attorney's Office for the Eastern District of New York, according to the person, who requested anonymity because the information is private. The exact nature of that subpoena and if it is related to the action Wednesday was unclear.

The person added that the raid is separate from a wide-ranging corruption investigation by the U.S. Attorney's Office for the Southern District of New York.

That probe resulted in the arrest on June 8 of longtime Platinum associate Murray Huberfeld for allegedly orchestrating a bribe to a union leader in exchange for an investment in Platinum. Huberfeld, through his attorney, has disputed the charges. Platinum was not named as a defendant in the related case.

Platinum remains in business with more than $1 billion under management. But the firm recently informed investors that it was likely to slowly wind down its largest hedge fund offering, Platinum Partners Value Arbitrage, and is considering doing the same for its other large strategy, Platinum Partners Credit Opportunities.   Continued...

 
Murray Huberfeld, a longtime associate of Platinum Partners, exits the Manhattan federal court house in New York, U.S., June 8, 2016. REUTERS/Brendan McDermid