- CHARLES SCHWARTZ BANK LOCATIONS BROOKLYN NY HOW TO
- CHARLES SCHWARTZ BANK LOCATIONS BROOKLYN NY PROFESSIONAL
Records filed in court show the company billed the receivership $1,311,360 for work through Maincluding $142,080 for Schwartz’s time. Some of Guidepost’s bills ultimately surfaced. That included hiring outside law firms and accountants. In a June 2017 filing with the court, Schwartz revealed that the receivership had thus far run up $26.2 million in “operational expenses” from what started out as a $609 million fund. In the first three months of the receivership, records show, Schwartz brought in eight other lawyers and staffers from his firm Guidepost, requested that the receivership be expanded, and in early 2017 asked that his requests for fees be kept under seal.Ī spokesperson for Schwartz declined to comment.
CHARLES SCHWARTZ BANK LOCATIONS BROOKLYN NY PROFESSIONAL
“The SEC staff believes that the receivership should be wound down quickly to, among other things, minimize the accrual of professional fees (which the staff understands currently account for as much as 40 percent of the cash on hand in the Receivership),” the letter states. They estimated that, on Schwartz’s watch, the receivership had racked up professional fees that amounted to 40 percent of the cash on hand, according to a May 19, 2017, joint letter from Schwartz and the SEC to Irizarry. The SEC lawyers wanted to resolve the receivership as soon as possible to avoid running up fees that were siphoning off much of what was left in the Platinum fund.
CHARLES SCHWARTZ BANK LOCATIONS BROOKLYN NY HOW TO
Within months of his appointment, Schwartz became embroiled in a dispute with the SEC about how to handle distribution of Platinum’s funds. When Schwartz was tapped as receiver in December 2016, he was required to report to the judge all potential conflicts of interest that could arise in the Platinum case. Schwartz’s bio on Guidepost’s website lists the Cuomo job and a dozen other oversight appointments, but makes no reference to the Platinum receivership. He got the Platinum receivership appointment the same year Governor Andrew Cuomo picked him to examine all state grants awarded under a controversial program known as Buffalo Billion. Schwartz, a former prosecutor under Rudy Giuliani, has been appointed as overseer of many cases, including as a monitor in federal cases against General Motors and Deutsche Bank. His job was to then sort out what victimized investors would get out of what was left. When the firm collapsed, the SEC said, the hedge fund formerly claiming $1.3 billion in assets had only $609 million in the bank.īrooklyn Federal Court judge Dora Irizarry appointed Schwartz as receiver to inventory assets still under Platinum’s control. The SEC charged Platinum with operating a Ponzi scheme, hiding huge losses from investors and in desperation using one investor’s funds to pay off others to keep the scheme afloat. The conflict-of-interest issue arose in 2017 when Schwartz was acting as court-appointed receiver in a civil case filed by the SEC against a hedge fund known as Platinum Management. On Wednesday, THE CITY disclosed Schwartz’s appointment - and his long-standing affiliation with Lenora Fulani, an activist who’s been accused of anti-Semitic rhetoric in the past and more recently has attacked Mayor Bill de Blasio’s solutions for fixing NYCHA. The federal monitor set to oversee the New York City Housing Authority previously resigned as receiver in a white-collar fraud case after the Securities and Exchange Commission accused him of a conflict of interest and running up fees, THE CITY has learned.īart Schwartz, a former federal prosecutor and head of the investigations firm Guidepost Solutions, was set to be appointed NYCHA’s monitor Monday by the Justice Department, as part of an agreement to settle federal charges of mismanagement and cover-up at the authority.
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