https://www.sec.gov/litigation/litreleases/2018/lr24360.htm

SEC Obtains Final Judgment Against Edward G. Newman

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23744 / February 7, 2017

SEC v. Zev Saltsman, et al., No. 07-CV- 4370 (NGG) (E.D.N.Y.)

SEC Obtains Final Judgment Against Edward G. Newman

On January 25, 2017, the Honorable Nicholas G. Garaufis of the U.S. District Court for the Eastern District of New York entered a final judgment against defendant Edward G. Newman. The final judgment imposes on Newman a permanent injunction against future violations of certain antifraud provisions of the federal securities laws and bars Newman 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, alleged, among other things, that Newman and other officers and directors of Xybernaut Corp., signed registration statements for private investment in public equity transactions (PIPE transactions) that were all false and misleading because those registration statements named nominee entities and nominee directors as the control persons and concealed the identify of an investor group that controlled large blocks of Xybernaut's shares. The complaint also alleged that Newman received $100,000 of the proceeds of a March 2002 PIPE transaction with this investor group and that Xybernaut's Form 10-Q, signed by Newman, falsely stated that this money was paid to a "financial advisor."

The final judgment permanently enjoins Newman from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-13, and 13a-14 thereunder. In addition, the final judgment bars Newman from serving as an officer or director of a public company. Newman consented to the entry of the final judgment.

The SEC's action against the other remaining defendants continues.

For further information, see Litigation Release Nos. 20341 (Oct. 19, 2007) and 23462 (Feb. 8, 2016).



https://www.sec.gov/litigation/litreleases/2017/lr23744.htm

Just got my 2nd payout from XYBR settlement. With this check, this crazy XYBR is over for me. Good riddance fraudsters!

Anyone know Xybernauts stock price in 2000????? Thanks!

Any help on xybernaut would be appreciated. Dumped the $0 value stock in Dec of 2013 to counter other gains. Trying to do taxes and etrade doesn't have records on how much I paid for the stock. How can I find approximate stock prices back btw 2000-2005??? AND, I never received any checks, what's this all about? Should I have received something?? Thanks to anyone that can help me with some insight.

Sorry no, we are still waiting for the money.
Caroline P. Barazesh

Analytics Consulting, LLC

o: 952.404.5709
c: 952.388.4280

From: Frank Mongiovi
Sent: Friday, March 07, 2014 7:36 AM
To: Caroline Barazesh
Subject: FW: XYBR REMISSION

Hi Caroline, any updates on the second round of checks for the recovery of additional funds(500k) from the XYBR suit.
Thanks,

Frank Mongiovi
---------------------------------------------------------
From: Caroline Barazesh <CBarazesh@bmcgroupfederal.com>
Date: June 28, 2013, 6:11:40 PM EDT
To: 'Frank Mongiovi'
Cc: "Patrick Kratz (BMC email)" <pkratz@bmcgroup.com>
Subject: RE: XYBR REMISSION

That money will be received later and will be included in a second round of checks.

Caroline P. Barazesh
952.404.5709
bmcgroup

hi from UK Xybernaut shareholder mighty puzzled

I had no idea there was life in this and just stumbled on this board.

From what I can gather Caroline P. Barazesh might be someone who can fill in the gaps.

Meant to say 1999 just seems so long agp!

Bought shares in 2009 but never received any papers or anything since the bankruptcy and federal charges is it to late and if not what do I have to do. Like most people I really believed in this company! What happened to all their patents I do know the military is using some of them! Any help would be appreciated. Maybe the government owes some money on patent infringements !

I bought a couple thousand shares in 2000. I have the papers of ownership but never heard anything. Does anyone have any constructive advice on if I can do anything to get some money back. Thanks

Hello fellow XYBR $ losers. Got bored tonight so I decided to google XYBR and found this site. Just a little info. Owned over 7,000 shares when the thieves decided to do what they did. Always thought the product could have been a winner even if it might have been a little early. Like any new product over time it would have been made small (remember the first cell phones). I laugh when I watch business shows now and they talk about google developing this new product called google glass. It certainly sounds exactly what XYBR had. OK enough of that. I did receive the first check back in 2008 I think it was and in July I got a 2nd one. From what I read in the previous post is it possible that a 3rd check could be sent out? I do know some that invested in XYBR but never filed the paper work for a claim so every time I got a check I thanked them because the less people that filed the more $ would go to those who did. And with the amount I lost every penny that I get back as little as it might be is better than nothing.

I was told by Caroline that the 500k would be distributed in a another remittance. Don't have a timeframe. You know how it goes.

Ex-Baker & McKenzie Partner Gets to 2 Years for Fraud

By Christie Smythe - Aug 7, 2013 4:05 PM GMT-0400
http://www.bloomberg.com/news/2013-08-07/ex-baker-mckenzie-partner-gets-to-2-years-for-fraud.html

Former Baker & McKenzie LLP partner Martin Weisberg, who admitted to stealing from a client and taking part in a $55 million securities fraud, was sentenced to two years in prison, the U.S. said.

Weisberg, 62, pleaded guilty to conspiracy and money laundering in May 2012 after prosecutors alleged he skimmed $1.3 million in interest from an escrow account for a hedge fund client, SIAM Capital Management. Separately, Weisberg joined a scheme to manipulate the stock price of technology firms Xybernaut Corp. and Ramp Corp. prosecutors said.

“Instead of using his talents to provide wise counsel, he lied to and stole from his own clients, lied to the Securities and Exchange Commission, and betrayed the investing public,” Brooklyn U.S. Attorney Loretta Lynch said in a statement.

U.S. District Judge Nicholas Garaufis in Brooklyn, New York, also ordered Weisberg to pay $297,500 in restitution and $250,000 in forfeiture, according to prosecutors.

Weisberg left Baker & McKenzie in October 2007 at the time of his arrest in the securities case. Previously, he had worked at firms including Cravath, Swaine & Moore LLP, Morgan Lewis & Bockius, and Shea & Gould, according to a memorandum filed by his lawyers in March.

He graduated from Northwestern University School of Law in 1975, where he was first in his class, according to the memorandum.

Richard Albert, a lawyer for Weisberg, declined to comment on the sentence.

The case is U.S. v. Saltsman, 07-cr-641, U.S. District Court, Eastern District of New York (Brooklyn).

To contact the reporter on this story: Christie Smythe in Manhattan at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

http://www.bloomberg.com/news/2013-08-07/ex-baker-mckenzie-partner-gets-to-2-years-for-fraud.html

Marty Weisberg gets two years, plus $500K+ restitution etc.

The only Xybernaut scammer to do time so far? But he was also up on an unrelated charge of stealing form some clients.

http://www.americanlawyer.com/PubArticleALD.jsp?id=1202614378733&thepage=1

Not to be greedy, but does anyone know if there will be any more money offerings from the justice Department coming our way either from the Salzburg case or related cases to XYBR?

Lopez Boy

You are probably right. We can't do anything about the BMC remission charges.
What would happen if the DOJ releases only 250,000 next time. Does that mean BMC will send us a bill instead of a check to satisfy their handling charges??

Lopez Boy (with a little negativity))

$350.000.00? REALLY hard to believe but there's no fighting it.

3) Claims Administration Fees

The forfeited funds returned by the DOJ through the Xybernaut Securities remission process will be reduced by the cost of the remission claims review and distribution and de minimus government expenses. No funds will be withheld for the cost of Government employees, investigators and attorneys handling the Xybernaut matter. Claims administration fees are billed according to a competitively bid contract with the DOJ that Analytics/BMC was awarded on the basis of best value to the government.

The total claims review and distribution costs deducted for the remission are estimated to be approximately $350,000 upon completion of the distribution.

Coordinated response from DOJ/BMC posted @ Remission Website.
This response should answer most questions regarding 2008 Litigation methodology vs 2013 Remission methodology and the resultant payout. It will also evidence the procurement approach and resonableness of the fees/payment to BMC for their efforts.

Can anyone tell me if there's a phone # of someone to contact about the settlement? I moved 2+years ago. ex roommate called and said a letter came from Xybernaut. Instead of putting in an envelope and mailing, she wrote my address and "forward" on it. I live 30 miles away; should have been here a week ago..........

Caroline confirmed for me that if you were not involved in the first distribution, too bad. You get nothing additional to bring you even with those who were involved. That may be the rules, but it is a bit of an injustice in my opinion since there was a subsequent remission from the same company for the same time period for the same crimes. That should re-open the case so to speak. It should be all treated as a one pool of money. But I dont make the rules. Anyway, if you did receive something in the first distribution, that amount is simply deducted from your recognized loss this time around.

Ditto for me also.


Lopez Boy

Ditto.

I was not included in the first distribution and did not get anything additional for that. I got the 3.05% only.

I was aware that those who didn't get in on the first distribution would receive both this time but the first distribution was 9.1% and the second 3.05% and if some folks got 22% instead of 12.15% the math folks at BMC are totally wacky.

Did someone really get a 22% payout in 2008? Before the payout a mathematician deduced we would get a 9.1% payout and that was exactly what mine was, on two different accounts. The one that, to me, takes the cake is the friend who was told in 2008 that he didn't qualify because he made money in the designated period (how'd he do that?) got a check last week.

Response from BMC.
"Dear Mr.XXXX.



I have forwarded your email to the appropriate officials in the Asset Forfeiture and Money Laundering Section of the DOJ and they will be contacting you.



Best Regards,





Caroline P. Barazesh

952.404.5709"

got my check,was never contacted in '08 either for what?,,,22%?
what a scam on scam!!!!
now i'm working on the edge-tech scam,but for lot less money invested.

I likewise was not contacted in 2008: 22% would've certainly been better than 3.05%. Is there a way for those who weren't contacted then to petition now for their share of the 2008 pool, or has all of that money already been distributed?

Also, don't know if anyone has the answer to this, but do I disqualify myself in any way from seeking more funds by cashing the remission check I just received?

Done.

I was one of the many investors who were not involved or even knew about the 2008 "payout" but was notified to fill out an application for the present remission payout (2013) back in 2011. I don't know how many new applicants were approved but maybe that's why the lower payout for 2013 came about.
Just a thought. I wonder how much $$ is the Justice Dept. holding back for a future release.

Lopez Boy

XYBRMBR, why not send your note to Caroline Barazesh at

CBarazesh@bmcgroupfederal.com

She maybe able to provide answers to your thoughtful questions

Many questions on payout amounts! Especially, when comparing 2008 settlement to 2013 remission. Specifics: 2008...22% payout of recognized loss, $4.11 million pool, 7,646 valid claims. Details on how recognized loss was determined was mailed to each claimant. Specifics: 2013...3.05% payout of recognized loss and $4.2 million pool...little information on methodology. Questions: 1) How was recognized loss determined (same as 2008...if not, why the change and how was the loss determined?) 2) How many valid claims (same as 2008...if not, why the change and how did the valid claims amount change?) 3) Public records show admin/attorney fees for 2008...what are those amounts for 2013? Personally, my recognized loss increased 3x fold, and my payout decreased 3x fold (doesn't make any sense!) Alledgedly, DOJ went with Analytics/BMC because they had the database and the administrative costs would be less therefore providing an increased payout to claimants...something is very wrong here!

One investor who was told he made money, not lost, the first time around so didn't file this time,,,,, and got a check for $185

Got my check today. Googled XYBR and found this message board. I had given up on ever seeing any money and forgot about this stock.
3.05% I unfortunately found my paperwork and saw what my losses were.

When you think how they (BMC group = lawyers and accountants) dragged this out for 26 months it's not hard to figure where the money went. I remember my ignorance when this first went down, thinking "Great! The DOJ is handling this and they already are paid by the government so there won't be lawyers, et al, taking a large share of the pot".

The question I have is; Why did the Justice Dept. even bring up this case (Victims VS Salsburg)??
Certainly not to punish Salsburg with a $100 fine and probation or to pay the victims 3.05 cents on the dollar!! Somebody has to be reaping some big bucks out of this settlement and it certainly is not us!!
Maybe they got the decimal in the wrong place and it should be 30.5 cents on the dollar LOL LOL

Lopez Boy

After 2+ years of submitting the paperwork and nearly a decade since many sold the stock, I cannot believe we are only be remitted 3.05% of our losses. A slap in the face:

Distribution of checks and mailing of final notices of pending submissions is expected to occur on Wednesday July 3rd, 2013. Petitioners with valid claims will be receiving 3.05% of their recognized loss.

Well for us to get a decent portion of our losses back, they will have to find about a billion dollars for the lawyers to pillage before we get ours.

The SEC is trying to get the Newmans to open their kimonos.

Kind of amusing. The Newmans have deferred prosecution agreements with the DoJ conditional on them either reaching a settlement with the SEC in the civil case including injunctions and lifetime public company bars, or being subjected to a judgement including those sanctions, by July 12th.

Before it will settle with them, the SEC is insisting that they disclose the assets of a particular offshore trust of which they are beneficiaries. The SEC wants a disgorgement etc order as well as the injunctions and bars, and for the disgorgement it wants to know what all of their assets are.

The Newmans are saying that they can't compel the trust to open up; the SEC calls bullshit on that.

So the Newmans are at risk of having their criminal cases re-opened, unless the SEC agrees to a settlement by 12th July.

To get around that, they filed motions in the SEC case asking for the appropriate injunctions and bars against themselves- which would satisfy the conditions of the DoJ deferred prosecution agreement. Don't see that one every day!

The court denied the motions, refusing to get involved with the SEC settlement process. So lots of pressure on the Newmans, it seems.

Anyway, kudos to the SEC for playing hardball with them. Dunno whether any disgorgement in this case would feed into the remissions, but maybe the SEC stance will uncover a pot of gold.

Meanwhile, Marty Weisberg was supposed to be sentenced last Friday in his criminal cases, but nothing on the court docket as yet.

And the scam goes on. I am glad to be getting something. But this is unreal. I would love to see those "calculations" No way this adds up. Its the old one for you, two for me" routine.

I imagine the better part of the money will be found in BMC'S account for all the work they've supposedly been doing the last two years. A lot less than I expected. Sickening. My REOGNIZED loss was $96.000. My real loss was $400.000. I get $2900.00 back. There's no use even waiting for the $500.000.00 which has given BMC 5.5 more months of income.

Am I reading the post from BMC (July 2nd) correctly? That we are to get back only 3.05% of our losses?

If so, we are victims not only from Saltzman and company but victims of the US Justice Department for letting the criminals off with only a $100 fine and probation. Where did all the money go? I guess I better stop here or I probably won't get my $150 "remission" check. Whoopee!!
I think I will invest my $$ in some penny stock. NOT!!!

Lopez Boy

I also followed up on the 500K and here's her response:

Subject: RE: XYBR REMISSION

That money will be received later and will be included in a second round of checks.

Caroline P. Barazesh
952.404.5709
bmcgroup

I wonder what happened to the $500,000.00

Thanks! That information is now on the Index board http://www.xybernautremission.com/EN/

Here's a reply from Carolyn (BMG) from my May 8th email:

The U.S. Department of Justice has approved release of approximately $4.2 million for distribution to approved victims. Transmittal of the funds to the distribution account is expected to occur shortly. Once the funds are received, checks will be printed and distributed.


Caroline P. Barazesh
952.404.5709
bmcgroup

Where did that information come from? Things I don't understand: I can't imagine the US Marshalls delivering the funds, which should be an electronic transfer, or why the marshalls would be involved at all; why would BMC need to acknowledge an electronic transfer and if they did have to they certainly could have in the 5 days since the 21st. I'm more than ready for it to be true but I'm skeptical

Thanks for the information. You seem to be only one on this board that can access that kind of important information. Again, Thank you!!

Lopez Boy

Asset forfeiture moneys released by DOJ/AFMLS to BMC. Awaiting acknowledgement by BMC of same. Following receipt by BMC from U.S. Marshalls, BMC should be able to prepare distribution in 7-10 days. Anticipate notice of same on BMC website soon. Good news for all of us that have be waiting all these years...hopefully more to come in the future from the likes of Saltzman, Weisberg and the Newman Brothers...Regards to All!

What a toad he is.