06/28/2012 188 (S5) SUPERSEDING INDICTMENT FILED as to Donna Levy (4) count(s) 1sss, 2sss-3sss, 6sss, 9sss, Thomas Prezioso (8) count(s) 6ss, 7ss-11ss, 12ss, David Levy (11) count(s) 1s, 2s-4s, 5s. (bw) (Entered: 07/02/2012)
e. DAVID LEVY and DONNA LEVY paid third parties through the Levy-Controlled Entities and/or through co-conspirators not named herein, at times secretly, to draft and disseminate to the public "touts" recommending that prospective investors buy shares of stock in the Target Companies at the same time that DAVID LEVY and DONNA LEVY were causing large numbers of press releases and marketing material to be disseminated to the public in the names of the Target Companies. DAVID LEVY and DONNA LEVY knew that aspects of several of the touts that they paid to have disseminated were exaggerated, misleading, and/or deceptive, in part because as insiders of the Target Companies, they possessed information concerning the Target Companies' shortage of capital, operational issues, and dependence on DAVID LEVY and others for future financing that was not available to the public. Moreover, many of the touts that were privately funded by DAVID LEVY and DONNA LEVY contained inadequate disclosures concerning the roles that DAVID LEVY and DONNA LEVY played in paying for and influencing the content of the touts, in controlling and influencing the affairs of the Target Companies, and in owning or controlling a large percentage of the stock in the Target Companies.
f. In part through the volume and misleading nature of the promotional activity that DAVID LEVY and DONNA LEVY caused to be distributed in the names of the Target Companies and by third parties, DAVID LEVY and DONNA LEVY "pumped up," i.e., artificially manipulated, the price of the stock in the Target Companies.
g. DAVID LEVY and DONNA LEVY took advantage of the artificial increase in the price of stock in the Target Companies, and increased public interest in the Target Companies, that they had orchestrated by "dumping," i.e., selling, into the market shares in the Target Companies that had been acquired through the transactions described above, or by causing co-conspirators to sell their shares in the Target Companies. DAVID LEVY and DONNA LEVY continued their misleading marketing campaign, and their simultaneous sale of shares, directly or through co-conspirators, until they had realized hundreds of thousands of dollars or more in profits from the sale of shares that were being dumped into the market in this manner. When their manipulation campaign was no longer propelling outside money to purchase shares that they owned, controlled, or had a financial interest in, DAVID LEVY and DONNA LEVY ceased causing the Target Companies to issue press releases on an accelerated schedule and ceased funding misleading third-party touts of the Target Companies. Following the conclusion of this misleading promotional campaign, the price of and investor interest in shares of the Target Companies collapsed, thereby harming: (i) investors in the Target Companies who had been induced to invest, in part, in reliance on the misleading promotional campaign orchestrated by DAVID LEVY and DONNA LEVY, (ii) founders and executives of the Target Companies, who held large numbers of restricted shares that were devalued by DAVID LEVY's and DONNA LEVY's manipulative activities, and (iii) the Target Companies themselves, by devaluing stock that could have otherwise been used by the Target Companies to seek alternative sources of financing and/or fund the Target Companies' growth.
h. After months or, in some cases, more than a year had passed, DAVID LEVY and DONNA LEVY again started to "pump and dump" Target Companies in which they continued to hold large blocks of shares. They did so by again orchestrating misleading promotional activities concerning the Target Companies and selling their shares to unsuspecting investors who purchased shares in part in reliance on the new misleading promotional campaign. This activity continued until it was no longer profitable for DAVID LEVY and DONNA LEVY to fund these promotional campaigns, in the process decimating the value of the stock of the Target Companies and the value of shares held by founders, executives, and public purchasers of shares in the Target Companies. DAVID LEVY, DONNA LEVY, and a co-conspirator not named herein ("CC-1") made over $6.5 million from the sale of shares of two Target Companies alone that they manipulated during the period 2007 to 2010- Cardiac Networks, Inc., which traded publicly under symbol "CNWI" ("Cardiac Networks" or "CNWI"), and Banneker, Inc., which traded publicly under symbol "BANI" ("Banneker" or "BANI").
07/16/2012 Calendar Entry **DATE CHANGE** as to Bradley Susser: Sentencing set for 9/24/2012 (*NOT 09/25/2012*) at 4:30 PM in Courtroom 20-C, 500 Pearl Street, New York, NY 10007 before Judge Paul A. Crotty, U.S.D.J (reset via e-mail by: Marlon Ovalles - Courtroom Deputy (mov) (Entered: 07/16/2012)
07/12/2012 Forwarded three certified copies of 193 Order to Assistant United States Attorney, Sharon Cohen Levin, Chief of the Asset Forfeiture Unit, One St. Andrew's Plaza, New York, New York 10007. (ft) (Entered: 07/16/2012)
07/12/2012 193 ORDER OF FORFEITURE as to Ricardo Fernandez. For the reasons set forth in this Order; NOW, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED THAT: 1. As a result of the offense charged in Count One of the Indictment, to which the Defendant pled guilty, a money judgment in the amount of $977,170 in United States currency (the "Money Judgment") shall be entered against the Defendant. The funds previously administratively forfeited from the 0685 Account shall be applied in partial satisfaction of the Money Judgment... The Clerk of the Court shall forward three certified copies of this Order to Assistant United States Attorney, Sharon Cohen Levin, Chief of the Asset Forfeiture Unit, One St. Andrew's Plaza, New York, New York 10007. SO ORDERED (Signed by Judge Paul A. Crotty on 7/11/2012)(dnd) (Entered: 07/12/2012)
07/12/2012 192 JUDGMENT as to Ricardo Fernandez (1), Count(s) 1, 10ss, 2, 2s-4s, 4ss, 5ss-7ss, 7s, Dismissed; Count(s) 1s, Imprisonment: 12 Months and One Day Supervised Release: 3 Years. The court makes the following recommendations to the Bureau of Prisons: That Mr. Fernandez be designated to a facility located in or near Southern Florida. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons: before 2 p.m. on Monday, September 10, 2012. The above drug testing condition is suspended, based on the court's determination that the defendant poses a low risk offuture substance abuse. The defendant shall not possess a firearm, ammunition, destructive device, or any other dangerous weapon. The defendant shall cooperate in the collection of DNA as directed by the probation officer. The defendant is to pay an assessment fee of $100.00 due immediately. The defendant is to pay restitution in the amount of $977,170 (see 07/11/12 Order ofForfeiture). (Signed by Judge Paul A. Crotty on 7/12/2012)(dnd) (Entered: 07/12/2012)
07/12/2012 DISMISSAL OF COUNTS on Government Motion as to Ricardo Fernandez (1) Count 1,2,2s-4s,4ss,5ss-7ss,7s,10ss. (dnd) (Entered: 07/12/2012)
07/12/2012 Calendar Entry **DATE CHANGE** as to Bradley Susser: Sentencing set for 9/25/2012 (*NOT 09/26/2012*) at 4:30 PM in Courtroom 20-C, 500 Pearl Street, New York, NY 10007 before Judge Paul A. Crotty, U.S.D.J (reset via e-mail by: Marlon Ovalles - Courtroom Deputy). (mov) (Entered: 07/12/2012)
07/11/2012 Minute Entry for proceedings held before Judge Paul A. Crotty: Sentencing held on 7/11/2012 for Ricardo Fernandez (1) Count 1s. (dnd) (Entered: 07/12/2012)
07/10/2012 Set/Reset Hearings as to Bradley Susser: Sentencing set for 9/26/2012 at 4:30 PM in Courtroom 20-C, 500 Pearl Street, New York, NY 10007 before Judge Paul A. Crotty. (dnd) (Entered: 07/10/2012)
07/10/2012 191 ENDORSED LETTER: As to Bradley Susser addressed to Judge Paul A. Crotty from Howard S. Master dated 6/26/2012 re: For the reasons stated in this letter the government writes to respectfully request a sentencing adjournment until September 2012. ENDORSEMENT: Application GRANTED. The sentencing is adjourned to 9/26/2012 at 4:30 p.m. in Courtroom 20-C. (Signed by Judge Paul A. Crotty on 7/10/2012)(dnd) (Entered: 07/10/2012)
1:11-cr-00062-PAC USA v. Fernandez et al 1:11-cr-00062-PAC-1 Ricardo Fernandez 1:11-cr-00062-PAC-2 Jeffrey Halbirt 1:11-cr-00062-PAC-3 Stinson Bland 1:11-cr-00062-PAC-4 Donna Levy 1:11-cr-00062-PAC-5 Jeffrey Hurwitt 1:11-cr-00062-PAC-6 Michael Steinberg 1:11-cr-00062-PAC-7 William Mackey 1:11-cr-00062-PAC-8 Thomas Prezioso 1:11-cr-00062-PAC-9 Bradley Susser
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