A former Baker & McKenzie lawyer, Martin Weisberg, faces a 15 year prison sentence for his role in conspiring to commit a $55 million stock fraud, which allegedly took place when he was working for the former Jenkens & Gilchrist law firm.
Reuters reported that Weisberg pleaded guilty to money laundering and conspiracy to commit securities fraud on Monday in connection with two separate criminal indictments.
“My actions were wrong and were violations of the law,” Martin Weisberg said at a plea hearing before U.S. District Judge Nicholas Garaufis. “I deeply regret these actions.”
Weisberg, 61, and his lawyers declined to comment after the hearing in federal court in Brooklyn. He faces up to 15 years in prison when he is sentenced on Sept. 14.
Weisberg was indicted in 2007 and accused of conspiring with officers at two companies, Xybernaut Corp and Ramp Corp, to commit a $55 million stock-fraud scheme. The alleged wrongdoing took place while Weisberg was working in New York for now defunct law firm Jenkens & Gilchrist Parker Chapin.
The second indictment, in 2008, alleged that he siphoned off $1.6 million in interest from clients’ escrow accounts while he was working at the New York office of Baker & McKenzie, which he joined in 2005.
Prosecutors said that Weisberg was the escrow agent in charge of a $30 million account for Siam Capital Management Inc and two affiliated entities. Weisberg placed the money in an interest-bearing account without telling his clients, spending $1.3 million of that interest on himself, they said.