Feds: NY hedge founder indicted in $1 billion fraud case

Federal authorities say they're unsealing an indictment charging a hedge fund founder and six others in a $1 billion fraud case.

U.S. Attorney Robert L. Capers in New York City scheduled a news conference for Monday to discuss the case against Platinum Partners chief investment officer Mark Nordlicht.

In June, the FBI arrested a longtime associate of Nordlicht, Murray Huberfeld, along with Norman Seabrook, the head of the nation's largest municipal jail guard union.

Federal authorities alleged Seabrook got tens of thousands of dollars in cash in exchange for steering $20 million in union money to the hedge fund. Seabrook and Huberfeld have pleaded not guilty.

There was no immediate information on an attorney who could comment on Nordlicht's behalf. Platinum representatives did not immediately respond to a comment request.