U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23462 / February 8, 2016
Securities and Exchange Commission v. Zev Saltsman, et al., Civil Action No. 07-CV- 4370 (NGG) (E.D.N.Y.)
SEC Obtains Final Judgement Against Martin Weisberg
The Securities and Exchange Commission announced today that on January 20, 2016, the Honorable Nicholas G. Garaufis of the United States District 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 Commission issued an Order suspending Weisberg from appearing of practicing before the Commission pursuant to Rule 102(e)(2) of the Commission'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 Commission's action against the other remaining defendants continues.
For further information, see Litigation Release No. 20341 (October 19, 2007).