12/11/2014 418 Letter in response to Court's November 25, 2014 Order re: Docket Entry 407 as to Steven Moskowitz, Andrew Tepfer (Reilly, Nathan) (Entered: 12/11/2014)
As the Court is aware, the government requested that individuals who have identified themselves as victims of the Spongetech Delivery Systems, Inc. (“Spongetech”) fraud fill-out and return “Affidavits of Loss.” The Affidavits of Loss detail any losses the individual victim suffered as a result of his or her purchase of Spongetech shares. In response to the Court’s November 25, 2014 Order, the government reviewed the Affidavits of Loss it has received in connection with this matter and determined that Ms. Barbara Jo Graae, the author of the November 13, 2014 Letter, had not submitted any Affidavit of Loss. It is for this reason that she was not included in the proposed Restitution Order that the government submitted to the Court in connection with the sentencing of Steven Moskowitz.
The government notes that, in addition to her November 13, 2014 letter, Ms. Graae also submitted a letter dated September 25, 2014 (ECF No. 387), in which she identified the number of Spongetech shares she had purchased and set forth her approximate loss. Through its review of relevant records, the government has confirmed that Ms. Graae was a shareholder of Spongetech. Additionally, in response to a request for additional information from the United States Attorney’s Office, on December 9, 2014, Ms. Graae provided an Affidavit of Loss and supporting documentation reflecting losses of $66,530.
As Ms. Graae made an effort through her September 25, 2014 letter -- in advance of the Court’s September 30, 2014 deadline -- to put the parties on notice of her request for restitution, and as her request is now supported by an Affidavit of Loss and supporting documentation, the government does not object to her inclusion in the restitution ordered by the Court in this matter. 1
Respectfully submitted, LORETTA E. LYNCH United States Attorney
1 On November 19, 2014, the Court ordered a corrected Restitution Order as to Steven Moskowitz in the amount of $12,650,138.00. At the sentencing of Andrew Tepfer, scheduled for December 12, 2014, the government will request that mandatory restitution also be ordered for Tepfer, who is joint and severally liable with Moskowitz. As such, the government suggests that if the Court were to grant Ms. Graae’s request, the Court could enter an Amended Restitution Order, inclusive of Ms. Graae’s loss in the amount of $12,716,668.00, which would be entered as against both Moskowitz and Tepfer. (The Court also imposed restitution in the amount of $3,082,056 with respect to Seymour Eisenberg on April 11, 2014. As such, Eisenberg is jointly and severally liable with Moskowitz and Tepfer up to that amount).
12/12/2014 420 Letter transmitting proposed amended restitution order as to Steven Moskowitz (Attachments: # 1 Proposed Order) (Reilly, Nathan) (Entered: 12/12/2014)
12/12/2014 419 Letter submitting proposed restitution order as to Andrew Tepfer (Attachments: # 1 Proposed Order) (Reilly, Nathan) (Entered: 12/12/2014)
1:10-cr-00600-DLI USA v. Metter et al 1:10-cr-00600-DLI-1 Michael Metter 1:10-cr-00600-DLI-2 Steven Moskowitz 1:10-cr-00600-DLI-3 Andrew Tepfer 1:10-cr-00600-DLI-4 Seymour Eisenberg 1:10-cr-00600-DLI-5 George Speranza 1:10-cr-00600-DLI-6 Thomas Cavanagh 1:10-cr-00600-DLI-7 Frank Nicolois
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