The Brief Writer

The Department of Justice has issued a press release regarding new charges against Martin Weisberg, the former corporate partner of an international law firm.

The indictment alleges that WEISBERG assisted a corporate client establish a $30 million escrow account and advised the client that the account could not earn interest for the client’s benefit. In fact, WEISBERG caused the $30 million to be placed into an interest-bearing account. Between August 2007 and October 2007, the account earned approximately $1.6 million in interest, and WEISBERG caused approximately $1.3 million to be wired out of the account without the client’s knowledge. WEISBERG allegedly concealed the fraud by telling the client that the bank did not produce monthly account statements, and instead, WEISBERG sent letters to the client with false account balances.

The escrow fraud was uncovered in the aftermath of WEISBERG’s earlier indictment on securities fraud charges currently pending in the Eastern District of New York. Those charges stem from a conspiracy through which discounted shares of two public companies were issued to offshore nominee entities that were controlled by two individuals who, among other things, allegedly kicked back a portion of their trading proceeds to WEISBERG and others.