Dworkin was supposed to be sentenced on Nov 5. Dunno whether this happened - nothing about it on the court docket.
However, there is a letter from Holder-heir-apparent Loretta Lynch detailing progress in collecting on Ribotsky's $14.5M. Summary version: Zilch.
Detailed version:
Dear Judge Dearie:
The government respectfully submits this letter in connection with sentencing in
the above-captioned case, which is currently scheduled for Wednesday, November 5, 2014 at
10:30 a.m. During the last court appearance in this case, the Court adjourned sentencing and
requested that the government obtain additional information regarding efforts undertaken by
third parties to recover funds for investors of the NIR Group (“NIR”).
Recovery efforts are proceeding along two separate, parallel tracks. First, as the
Court is aware, on September 28, 2011, the Securities and Exchange Commission filed a civil
lawsuit against NIR and the NIR fund manager, Corey Ribotsky, alleging securities fraud.1 See
SEC v. NIR, 11-CV-4723 (JFB). On November 13, 2013, as part of a settlement with the SEC,
Ribotsky agreed to pay disgorgement, prejudgment interest and a civil penalty in the amount of
$14.5 million, and the Court entered judgment against Ribotsky in that amount. However, to
date, Ribotsky has failed to pay any funds to satisfy this judgment, and, as a result, the SEC has
undertaken action to enforce the judgment and recover assets from Ribotsky. Discovery
concerning Ribotsky’s income, assets, and ability to satisfy the judgment is ongoing, and the
SEC has informed the undersigned that Dworkin has provided substantial assistance to the SEC
in its collection efforts against Ribotsky.
Second, on July 21, 2014, PricewaterhouseCoopers, acting as liquidators for NIR
and on behalf of NIR investors (“the Liquidators”), filed a civil action in New York County
Supreme Court against Marcum & Kliegman LLP. A copy of this complaint is attached hereto
as Exhibit 1. In this action, the Liquidators seek $25 million in damages for failure to protect
NIR investors by properly conducting an audit. See Complaint, Exhibit 1, ¶ 1. As set forth in
the PSR, Marcum failed to produce an audit report for the year 2008, a time that the fraud to
which Dworkin pled guilty was ongoing. Attorneys for the Liquidators have informed the
undersigned that the parties are currently litigating pretrial motions. Attorneys for the
Liquidators have further informed the undersigned that Dworkin, acting at the direction of the
government, met with them and provided information useful to them. A letter from the
Liquidators to the Court is attached hereto as Exhibit 2.
Respectfully submitted,
LORETTA E. LYNCH
United States Attorney
Eastern District of New York
AI
