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Update: Councilman Accused Of Money-Laundering, Fraud
By
Ben Muessig
Published Feb 9, 2010
Modified Feb 9, 2010
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By
Ben Muessig
Published Feb 9, 2010
Modified Feb 9, 2010
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[UPDATE BELOW]Councilman Larry Seabrook (D-Bronx) has reportedly been hit with a 13-count indictment on federal charges of money laundering, conspiracy to commit mail and wire fraud, mail and wire fraud, extortion, and receiving an unlawful gratuity. Insiders told the Times that the Democrat—who represents Wakefield, Co-op City, Edenwald, Williamsbridge and Baychester—is suspected of helping a boiler company obtain city contracts.
Seabrook's attorney, Murray Richmond, said he didn't have enough information about the indictment—which is expected to remain sealed until this afternoon—to discuss the charges in detail. "Once I have been able to review the indictment and all of the allegations I will be able to comment more fully," he said. According to the Daily News, Seabrook has already turned himself in.
This isn't the first time that the three-term councilman and former state senator has come under fire. He has already been investigated for getting his sister a job and allegedly taking part in a real estate scam involving a Seabrook-founded nonprofit that rented space and subleased it to other Seabrook-linked nonprofits, which paid inflated rents using city money.
UPDATE: The 65-page federal indictment [PDF] has been unsealed, and Seabrook is facing a number of charges, including:
- Helping a friend land a $300,000 subcontract to install two boilers at the new Yankee Stadium, then shaking down the pal for $50,000, according to the Times.
- Altering a receipt for a $7 bagel sandwich and a diet soda so he would be reimbursed $177, according to the Daily News.
- Directing more than $1 million in discretionary funds to finance nonprofits that inflated their rent claims to the city, and paid his girlfriend, his brother, sisters and nephews $500,000 in salaries and consulting fees, according to the Post.
- Laundering money through political clubs and using the cash for credit card bills, airline tickets to Florida, books, parking fines, and flowers for his sisters.
Council Speaker Christine Quinn issued a statement noting that the Council—which last year saw Miguel Martinez sentenced to five years in prison for stealing $106,000 intended for nonprofits—takes "the deeply troubling allegations" against Seabrook "very seriously." She added: "If Council Member Seabrook's alleged crimes are proven to be true, they display a galling abuse of the trust and confidence placed in public officials."
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boiler
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City Council
co-op city
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custody
extortion
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larry seabrook
money
money laundering
rent
slush fund
wakefield
wire fraud
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