The government’s public-corruption cases involving two NYPD cops and a city union official could be in trouble thanks to the feds’ star witness.
New court documents reveal that Jona Rechnitz, a Mayor de Blasio campaign donor who’s the feds’ key witness against two NYPD cops and ex-union official Norman Seabrook, may have been involved in a Ponzi scheme while he was cooperating with the feds.
If true, the feds could be forced to rip up his cooperation agreement, putting their cases in jeopardy.
According to newly unsealed state-court documents, Rechnitz was a recruiter for a $70 million Ponzi scheme involving Jason Nissen, a former math teacher busted last week and charged by Manhattan federal prosecutors with duping investors in his wholesale-ticket business.
It’s unclear whether Rechnitz knew Nissen was paying old investors with money from new investors, but court documents filed by Diamond wholesaler Taly USA Holdings suggest that he may have kept recent concerns hidden from the government and that he may have used his relationship with the feds to benefit one of his wealthy pals.
A spokeswoman for the Manhattan US Attorney’s Office declined to comment on whether Rechnitz ever came forward to disclose his concerns.
A lawyer for Rechnitz also declined to comment.
