Weissman victims due $64 million
Monday, January 7, 2013 at 5:02AM
The FCPA Blog in American Bank Note Holographics, Judge Barbara S. Jones, Morris Weissman

Federal Judge Barbara S. Jones on Friday ordered Morris Weissman to pay $64,390,632 in restitution to victims of his 1998 fraud.

Weissman was indicted in 2001 and convicted by a jury in 2003 of two counts of accounting fraud and two counts of FCPA books and records offenses.

He was chairman and CEO of American Bank Note Holographics, Inc. 

After the company's IPO in 1998 and discovery of inflated earnings and false accounts, the company's stock fell from $16 at the IPO to $1.80.

The court sealed the names of those who lost money in the IPO and are entitled to damages.

Weissman, 72, hasn't been sentenced for the FCPA offenses.

He's been free on bond since his 2003 conviction and no sentencing date has been set.

One of Weissman's co-conspirators, Joshua Cantor, the former president of American Bank Note, pleaded guilty in 2001 for his role in the fraud and for bribing foreign officials. He also hasn't been sentenced.

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Judge Jones' January 4 order of restitution in U.S. v. Morris Weissman said:

Upon the application of the United States of America, by its attorney, Preet Bharara, United States Attorney for the Southern District of New York, Eugene Ingoglia, Assistant United States Attorney, of counsel; the presentence report; the Defendant's conviction on Counts One through Four of the above Indictment; and all other proceedings in this case, it is hereby ORDERED that:

1. Amount of Restitution. Morris Weissman, the Defendant, shall pay restitution in the total amount of $64,390,632 to the victims of the offenses charged in Counts One and Two. The names, addresses, and specific amounts owed to each victim are set forth in the Schedule of Victims attached hereto. Upon advice of a change of address, the Clerk of the Court is authorized to send payments to the new address without further order of this Court.

2. Defendant's liability for restitution shall be joint and several with that of any other defendant ordered to make restitution for the offenses in this matter. Defendant's liability for restitution shall continue unabated until either the Defendant has paid the full amount of restitution ordered herein, or every victim has been paid the total amount of his loss from all the restitution paid by the Defendant and co-defendants in this matter, or otherwise ordered by a Court.

3. Sealing. Consistent with 18 U.S.C. §§3771(a)(8) & 3664(d)(4) and Federal Rule of Criminal Procedure 49.1, to protect the privacy interests of victims, the Schedule of Victims attached hereto shall be filed under seal, except that copies may be retained and used or disclosed by the Government, the Clerk's Office, and the Probation Department, as need be to effect and enforce this Order, without further order of this Court.

Dated: New York, New York
January 4, 2013

Barbara S. Jones

United States District Judge

Article originally appeared on The FCPA Blog (https://www.fcpablog.com/).
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