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Update: Councilman Accused Of Money-Laundering, Fraud

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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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Comments [rss]

  • Kelles

    city council and state senate are doing their best to reinforce those negative stereotypes about politicians

  • cutlass

    When Christine Quinn says "deeply troubling allegations," what she means is "Bozo got caught."



    When she says "a galling abuse of the trust and confidence placed in public officials," what she means is "Look! I can say this with a straight face."

  • FelixtheCat & Christine Quinn'

    http://www.nydailynews.com/blogs/dailypolitics/2010/02/vance-investigating-indybloomb.html



    The Manhattan DA is investigating a $750,000 personal campaign contribution made by Mayor Bloomberg to the state Independence Party and passed on to a campaign operative who has yet to fully account for how he spent the cash, sources confirm.



    Strange on how none of these appears in the NY Times and yet all these "rumors" about Paterson. Mainstream Media are the real terrorists.

  • JacqueMehoff

    that's one sh*t eating grin he has there.

    I hope they got stuff on all these corrupt council members.

    I swear I think this stuff goes on in all local govt. even the community boards.

  • FelixtheCat & Christine Quinn'

    community 4- Hell Kitchen and Quinn have some shady dealings.

  • jibbly

    You wonder if there are any little boys and girls out there that think to themselves,"When I grow up, I want to become a crooked politician!"

  • FelixtheCat & Christine Quinn'

    Please Feds, get Quinn, Bloomberg, Simcha Felder, Inez Dickens and the rest of them. Perhaps even Jessica Lappin directed funds to her sister and husband? Lappin is Quinn Jr.

  • Ishtar

    $7 to $177? Just had to get extra greedy with it.

  • Ishtar

    If he's brought up on these charges then almost all elected officials should be brought up on charges for securing benefits for their campaign contributors.

  • Snoopy

    Any description of the alleged perp? Oops never mind.

  • FelixtheCat & Christine Quinn'

    Seabrook and Simcah Felder, who now works with John LIu in the comptroller's office, ran the govt operation hearing fiasco on overturning term limits. they didn't permit people to speak even though they waited outside for hours and were turned away. The vote was fixed. Felder really did more than seabrook. I hope the Fed are saving the bigger crooks for last (Felder, Quinn, Dickens).

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