Court Enters Final Judgment Against Martin Weisberg
The Securities and Exchange Commission (SEC) announced that on January 20, 2016, the Court for the Eastern District of New York entered a final judgment against defendant Martin Weisberg. The final judgment imposes on Weisberg a permanent injunction against future violations of certain antifraud provisions of the federal securities laws and bars Weisberg from serving as an officer and director of a public company.
The SEC’s complaint, filed on October 19, 2007 and amended on March 23, 2015, charged Weisberg with making fraudulent misrepresentations about an Israeli investor group in corporate filings and other documents of two public companies – Xybernaut Corporation and Ramp Corporation. Weisberg, the securities counsel to Xybernaut and Ramp, prepared the filings and also served as a director of Xybernaut.
The final judgment permanently enjoins Weisberg from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 14(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20 and 14a-9 thereunder and aiding and abetting violations of Section 13(a) of the Securities Exchange Act of 1934 and Rules 13a-1 and 13a-13 thereunder. In addition, the final judgment bars Weisberg from serving as an officer or director of a public company. Weisberg consented to the entry of the final judgment.
On May 21, 2012, in a separate action, Weisberg pled guilty to one count of money laundering and one count of conspiracy to commit securities fraud in connection with the offerings of securities of Xybernaut Corporation and on August 7, 2013, the court entered a judgment of criminal conviction against Weisberg in the United States of America v. Martin Weisberg, 07-CR-641 and 08-CR-347 in the United States District Court for the Eastern District of New York. As a result of his conviction, the court sentenced Weisberg to 24 months imprisonment, 3 years of supervised release, and ordered him to pay restitution in the amount of $297,500.
On October 9, 2013, the SEC issued an Order suspending Weisberg from appearing of practicing before the SEC pursuant to Rule 102(e)(2) of the SEC’s Rules of Practice. Weisberg was an attorney admitted to practice law in New York. See Administrative Release No. 34-70641 (October 10, 2013).
The SEC’s action against the other remaining defendants continues.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.