IPwatcher
3 months ago
Transcript of the sentencing hearing is up...
A little bed time reading for the DECN watchers....
https://storage.courtlistener.com/recap/gov.uscourts.dcd.225086/gov.uscourts.dcd.225086.204.0.pdf
As shown by the victim impact statements, these
weren't just corporate investors or private family offices
that invested. Real middle-class Americans believed you,
invested their life savings in DECN and are now living with
the consequences.
One victim says that he lost about half his
savings. Another described having to curtail travel plans
because of the lost money and that he now has to look into a
home equity loan.
Another couple worries they might not be able to
retire at all after investing about $140,000 in your
fraudulent scheme.
And another who tried to warn others about your
scheme ended up moving because of the threats he received
and he says he's lost faith in our law enforcement system as
a result.
These are very real financial, emotional and
psychological harms that you caused.
More, even once the SEC caught on to your schemes,
you doubled down on your scheme, created a nom de guerre to
undermine their investigation, attacked the integrity and
credibility of the SEC staff member involved and anyone else
who dared to raise questions about your actions and worked
to encourage people to continue to invest in DECN on false
pretense.
To a large extent, this worked. I think
Mr. Fenton is right that your actions caused the wasting of
valuable FDA time at a time when that agency was desperately
trying to provide help for people who were sick and scared
about the pandemic.
I think that he's also right in describing you
tricking victims into writing letters to agencies that
really were against their own self-interest and that were
attempting to stymie the efforts to stop your fraud.
And I think your attacks on Investigator Perkins
are despicable. It was only after the DOJ indicted you that
your scheme finally unraveled. But even that didn't really
stop you. I find by a preponderance of the evidence that
you tampered with witnesses and obstructed the investigation
through your contacts with Victims 1 and 2 specifically and
other victims throughout 2021 and 2022 and that you engaged
in additional fraudulent conduct through entering into loan
agreements you had no intention of repaying, all in
violation of your release conditions.
This is significant, shocking additional
misconduct, the extent of which I rarely see even with
hardened criminals. Even your attorneys admit that it took
having your release conditions revoked for you finally to
wake up to the severity of your actions.
I also have very little evidence of remorse here
for me to consider in your benefit
...
I find the aggravating factors include the fact
that you took advantage of the COVID pandemic to defraud
people, that you so personally and intentionally attacked
investigators trying to stop your fraud scheme and that you
continued to violate the law and your release conditions
even after your indictment.
I also agree with Mr. Fenton that there's a strong
need for general deterrence here, recognizing how vulnerable
we as a country are to fraud during disaster circumstances
and the need to send a clear message that that type of crime
will be punished severely.
These factors frankly suggest that a sentence near
the top of the statutory maximum would be appropriate.
On the other hand, there are several significant
mitigating factors here, including my belief that you hoped
to develop a COVID test, your age and your serious health
conditions.
But for these factors, I would be sentencing you
to a much higher sentence than I intend to impose.
Sleep tight. And don't have nightmares!
IPwatcher
3 months ago
I'm sure he is a bit lonely, and would love to hear from us.
You're all right thanks!
He's where he is because of what he did. I wouldn't trade places with him that is for sure. I feel a sense of satisfaction and even relief that justice has caught up with him and stopped his wayward behaviour.
But NOT joy.
As for gloating? Well that is certainly what Berman would have done (and did) BEFORE the reality of the law collided abruptly with whatever narcissistic fantasy he was indulging in.
But what purpose would that serve?
I like to think... or at least hope that I am better than that.
Happy to leave the man be in peace now. He's doing his time, and appears to have lost everything else important. He's down. And kicking a man when he's already on the ground is ungentlemanly behaviour and I was brought up better than that.
So personally, I'd much sooner just pity him now, than bully him, and I would encourage others likewise.
pumper_stumper
3 months ago
Our favorite CEO has a new "home". He was transferred to a medical facility prison in Fort Worth, Texas. He has a birthday coming up, on Aug 31. He is allowed to receive mail of course, so how about sending him a birthday card in a couple of weeks? I'm sure he is a bit lonely, and would love to hear from us.
KEITH BERMAN
Register Number: 22728-509
Age: 70
Race: White
Sex: Male
Located at: Fort Worth FMC
3150 HORTON ROAD
FORT WORTH, TX 76119
To send mail to an inmate, use the following:
KEITH BERMAN
Register Number: 22728-509
FMC Fort Worth
FEDERAL MEDICAL CENTER
P.O. BOX 15330
FORT WORTH, TX 76119
The BOP encourages inmates to write to family, friends, and other community contacts to maintain these ties during incarceration. Written correspondence is classified as either general or special mail.
General Correspondence
"General correspondence" is opened and inspected by staff for both contraband and content that might threaten the security or good order of the institution.
Special Mail
Special incoming mail that is specially marked as such, can only be opened only in the presence of the inmate. It too will be inspected for physical contraband and the qualification of any enclosures as special mail.
Of course, this is all public information, available to anyone.
IPwatcher
4 months ago
I'm just concerned that somehow, Mr Slimeball, worked his way out of this....
Victims can obtain his actual whereabouts using the Federal Victim notification system.
Last I heard he remains incarcerated at the DC federal prison medical facility that he was committed to at sentencing. I believe this shows as 'not in BOP custody' because he is currently in the medical facility rather than in the general inmate population.
He has certainly not been released from federal custody, and won't be for quite some time I would imagine.,
Rest assured, He's paying his dues one way or another, and I for one would not trade places with him. Pity is the appropriate emotion for him now. Because justice is not nice, but is IS justice.
pumper_stumper
4 months ago
Truth, once again, funnier than fiction.....
"The PSR describes Mr. Berman's financial condition as "appear[ing] to have negative net worth... with no monthly cash flow... [and no] ability to pay a fine in this case, in addition to restitution." PSR at 21 (ECF No. 191). Mr. Berman's assets are dwarfed by his substantial amount of debt. Mr. Berman's assets total $2,460, comprised of $1,500 from an inoperable 1973 Opel GT, $160 dollars in his checking and savings accounts, $100 in DECN stock, and $700 in various electronic equipment. Id. at 19. Mr. Berman's liabilities are extensive, totaling $345,000 owed to financial institutions and other merchants. Id. This results in a substantial negative net worth totaling $342,540. Id.
Mr. Berman's projected earnings and other income are similarly grim. Mr. Berman's age and numerous, serious health issues stimy his ability to begin paying restitution. "
Mere mortals might drive a non working 1973 Opel, but only Biotech CEO's like Berman have the GT model!
FYI, the Government is asking for restitution in the amount of $1,043,618.20
IPwatcher
7 months ago
As an aside, thanks to all of the stretching of word meanings in these communications, perhaps Keith should have come up with a scheme to sell quotation marks?
Not his style.... too much hard work!
I think instead Keith would have gone down the route of setting up a company to copy and recycle used quotation marks from elsewhere. (Less work). And rather than actually selling the quotation marks (too much hard work ....someone else could do that!) he'd just have sold shares in the company that had the idea of recycling quotation marks (less work!).
And rather than actually running this business (hard work!) he'd just empty it to fund his lifestyle and porn habit (less work).
And when people started to ask questions about why his much hyped 'quotation mark' business was underperforming, He'd simply diversify into 'commas and related punctuation' and fund raise on the back of that!. Rinse. Repeat.
The "story" was always and ever the product with Berman.
It took a federal judge to assert a jolt of reality into Berman's delusional self belief.
He is your classic Narcissist!
It's a recognized personality disorder/ mental illness. So he has that to fall back on. But its one of those awkward ones in which it's the people around you that suffer!
And agency is important here!
I believe Keith had agency here, so he should account for his destructive behaviour.
I have met the type. I have become a bit of a spotter truth be told!
He could have worn a T shirt which said "I am utterly untrustworthy, do not ever buy from me!" and worked quietly in social care or such like.
Instead - metaphorically - he wore a red cap which said "I am God... worship me and give me all your money! Cross me and I will Kill you"
The 'only fans' was just Berman's way of 'grabbing pussies! Because they let you!'.
croesusjr
7 months ago
Nice to see this was resolved properly after all this time and strife. Been checking this board every few months. Thanks IPWatcher for keeping us up to date.
I suffered minor losses, and also remain the "proud" "owner" of 157 "free" shares from the big reverse split forever ago that would have cost me over $300 (iirc) to unrestrict. My only other memento, after decades of following this from when it was ISCR and touted by the "made" and "mayd" handles on Yahoo (two of which inadvertently outed themselves as the same person, despite the feint of stylistic differences, which I pointed out only to be disparaged and ignored), is this private message from Pluto after I questioned the invisibility of the "settlement' in the financials. I post it here simply as a relic for posterity:
Icon for plutoniumimplosion
plutoniumimplosion
Sunday, March 26, 2017 11:34:01 AM
So much time has been wasted discussing nonsense. So it can now be shown that management and the BOD didn't dupe or steal from or hide the settlement from shareholders (and people acting like shareholders who use message boards to fulfill a negative agenda).
So almost a year later what has been proven? NOTHING! Now one of the biggest critics of management and the BOD and the guy who raised the question in the first place in his attempt to put together enough facts to bring a class action lawsuit (because that's what he does), well ... this guy is now claiming credit for unwinding the enigma and finding -- NOTHING.
Isn't there a more important question in need of asking? Something like, why did management settle the lawsuit? And by settling in the matter that they did, wasn't there a plan in place by management?
And, you can get that answer by looking at the pharmatechdirect.com Web page.
How many will look? I predict, less than a handful.
As an aside, thanks to all of the stretching of word meanings in these communications, perhaps Keith should have come up with a scheme to sell quotation marks.
IPwatcher
7 months ago
7 years, 7 years and 5 years (Concurrently) with 3 yrs supervision thereafter!
So... that is like... "7 years but don't even think of appealing... there is no point!... we got you forwards backwards sideways and upwards... Compris?.... Now Say Thankyou Judge!!"
I take that as the judge showing leniency at the same time as not swallowing any of Berman's bullshit! Nor that of those that spoke up for him!
And as he is below the 10yr limit, he will probably score minimum security. I think the 3yrs supervision is important given the sociopathic behavior exhibited...
I can live with this outcome. They guy is old and sick and I am not cruel. They have locked him up good and hard, but they have not thrown away the key.
But then again , I didn't lose any money. (Nor did I make any... I am honest! . And I sleep at night!)
I just saw this toxic POS for what it was and posted warning notices for others to see (As did several others.
For which I got abuse and intimidation where 'thanks' would have been due.(As did several others... to whom I owe thanks for their warnings that were heeded!)
Ideally I'd like to see ALL of those bottom feeders that scored $ off the back of this DECN scam gone after by law enfrorcment. No one should be able to show a profit in a sad situation like this. No one!
Justice is not quick, but sometimes it gets there in the end!
Minute Entry for proceedings held before Judge Trevor N. McFadden: Sentencing held on 4/12/2024 as to KEITH BERMAN. Defendant sentenced to a term of Eighty-Four (84) Months of Incarceration as to each of Counts 1s and 2s, Sixty (60) Months of Incarceration as to Count 3s, all terms to run concurrently, followed by a term of Thirty-Six (36) Months of Supervised Release as to each of Counts 1s, 2s, 3s, all terms to run concurrently. Special Assessment of $100 imposed as to each of Counts 1s, 2s, 3s, for a total amount of $300. Restitution to be determined at a later date. Bond Status of Defendant: Committed/Commitment Issued. Defense Attorneys: Michelle M. Peterson, Kevin B. Collins, Nick Xenakis; Jose J. Ramos, Jonah T. Panikar, Brandon Howell, Jose F. Giron; US Attorneys: Christopher R. Fenton, Matthew Reilly, Katherine Reilly; Probation Officer: Hana Field; Court Reporter: Lisa Edwards. (hmc)[/url][tag]insert-text-here
IPwatcher
7 months ago
So erm... yeh! That's the thing about being a proven liar Keith....
I think the point is this...
If I asked most people what the weather was like outside? and they told me it was raining, I'd likely believe them.
But If I asked SOME people what the weather was like outside? and they told me it was raining, I'd go to the window and look for myself.
Now if I asked Keith Berman what the weather was like outside? And he told me it was raining...
Well... First I'd go the window. To check whether it was worth going down the 3 flights of stairs.
If it looked like it was raining, I'd go down the stairs and outside into the street.
I would feel the cold drops on my face,
And only then, I would pull an eppendorf tube from my pocket.
And I would catch therein some drops.
And I would send that tube off to a lab.
For a Karl Fischer titration analysis.
And if they told me that the eppendorf contained >99% water.... and showed me the analysis... raw data
then I would ask to see their CLIA certifications....
And if these checked out...
only THEN would I believe Keith Berman when he told me it was raining!
IPwatcher
7 months ago
The glowing remarks in the support letters made me want to blow lunch.
I was more disturbed by his stories of maternal emotional abuse as mitigation here...
There are 2 broad possibilities.
One is that Poor Keith's formative years were blighted by an abusive matriarch and this somehow shaped the flawed character whose only catharsis was the comfort he could find was when he quite understandably sought to indulge hundred's of thousands of dollars (of other peoples money) in misogynistic pornography. It was a form of therapy.
An alternate and less beneficent interpretation might be that a sociopathic liar chose to maliciously impugn the reputation of his own long dead mother, incapable of defending herself, and way past the point where any facts could be established one way or the other, in a venal attempt to try and excuse his actions and game a more favourable outcome for himself when stuck on a sticky wicket!?
But - c'mon - what kind of scumbag would try and do something as base as that?
Erm... Exactly the same kind of scumbag that would ruthlessly exploit a worldwide global pandemic (that cost the lives of millions) to score some green off a pump and dump scam, and blow his victims pension saving and college funds on cyber porn. Is that who!?
Whilst the truth is likely somewhere in the middle ground, I guess which of these 2 polarising interpretation you would actually choose to believe depends on how willing you are to take the word of a convicted fraudster, serial liar, arch persuader, mountebank, chancer and moral vacuum Keith Berman as being the actual truth!
So erm... yeh! That's the thing about being a proven liar Keith....
If you have been affected by any of the issues raised in tonights instalment..... etc.
IPwatcher
7 months ago
DECN WAS A SCAM!
And the scary thing is ..... it could happen again!
And probably will!
Time served Keith? I think NOT!!!!
... Think about it....
Arie Rabinowitz - for example - wrote a glowing testimonial for his good mate Keith. This guy quite likely has access to the funds needed to start the pump over again. There may be others similarly placed who might be disposed to work the angles!
So age and health considerations aside, with access to finance, all Keith would actually need is another mark to act as 'front' for him, to sign the paperwork etc. (as his conviction would preclude him from doing so), along with a 'new' story as 'cover' - and any number of distressed tech companies could provide that - , and then hey presto, the merry go round is back in business, with Berman in the shade this time, rather than front and centre! "Roll up, Roll up.... get your shares in the next big thing!... We're going to the moon!"
Keith has already shown (via those shareholder letters, for example) that he is quite capable of persuading otherwise honest people to do highly questionable things on his bidding, and also that he has no moral qualms whatsoever about doing so when he thinks it is in his interest!
So its not beyond the realms of possibility!
Age, ill health and Jail are potentially the only things actually holding him in check! His moral compass certainly wasn't holding him in check at any point!
IPwatcher
7 months ago
I am extrapolating here, but I guess what was happening was this...
Akpha Capital Instalt were advancing "loans" to DECN with punitive conditions....
OID and interest with D4E swaps that would hurt retail shareholders.
Berman was using the loan principle to pay The Bio Co for supplies and development effort, to support his 'online entertainment' habit and fund his lifestyle,
Meanwhile he was using "Stories" - like the TOV litigation with the prospect of a $300m JnJ litigation pay out (... which was never happening, and didn't) to keep the share price buoyant and attract in 'marks' who would hoover up the shares that Alpha were dumping after conversion at inflated prices.
As the TBJ development effort was losing traction, the 'Shoe in' TOV/ Patent JnJ litigation was the hook for new retail investors.
When that went south initially, he doubled down with the appeal (get 'em cheap) and when that when the way of the dodo the Covid scam fell into his lap like manna from heaven!
All the time, vultures like Alpha were probably coining it in in healthy compounding interest, OID discounts on repayable loan notes, while pocketing discounted shares that were being dumped to the market as quickly as they were vested, thereby diluting any retail investors who actually bought into Berman;s BS to waste.
Rinse and repeat.
Remember that Berman/DECN never even developed Genultimate 'generic' test strip!! - he was just the distributor. The whole (generic) glucose strip business all fell into his lap when Shasta (who did develop the JnJ generic and filed the 510K) sh&t the bed with the FDA and Berman sued them for breach of contract,
To read DECN's press releases, -and Berman's pleading - you'd be forgiven for thinking that DECN - and Keith Berman himself - had invented the whole field of enzymatic glucose amperomtry!
When in fact they inherited some smbg knock-offs from elsewhere via litigation, and used that business to give a veneer of legitimacy to what amounted to a pink sheet pump and dump scam!
As long as DECN stayed afloat, Alpha could keep the finance shekels rolling in, and Berman could maintain the porn habit and lifestyle to which he had become accustomed!
The only losers were DECN retail investors -or "Penny stock traders" as Plutonium would pejoratively label them!
DECN WAS A SCAM!
And the scary thing is ..... it could happen again!
And probably will!
Time served Keith? I think NOT!!!!
rawman
7 months ago
Despite several flaky business models, which had no chance of any significant success, DECN stayed in business by touting a grand future, based on heavily promoted lawsuits. How many months did DECN hang on, while Berman was operating under the cover of the lawsuits against J&J? Ultimately, DECN (Berman) never disclosed any of the financial details related to the purported J&J "settlements"! My guess is the settlements were so rotten (or non-existent) Berman could never justify the time and money it took to chase verdicts that had no chance of ever happening. For many years DECN survived, not due to any business activity, but due to Berman's inclination to blow smoke, much like the GenViro/Covid fiasco! For me an important remaining question is, "How did Berman personally survive, if he never took personal compensation from DECN, PharmaTech, and/or any of the related companies? A deep dive by an SEC forensic accountant, with public disclosure, would have been special! Oh well.....
IPwatcher
7 months ago
t seems the Berman gang concluded the SEC and/or DOJ would not invest the time and/or effort needed to verify the bogus claims. I bet there are just a few people, you and I included, who could help clarify!
Well here is the first one:
Over the last 20 years, he sold
affordable and reliable diagnostic devices that helped diabetics monitor their blood glucose levels.
These devices worked using impedance spectroscopy, a sophisticated technology that can detect
the electrochemical signature of a blood sample
Smbg test strips of the type that DECN sold use "Electrochemical Amperometry" to do the actual glucose measurement, not EIS. And they have for years.
I think it was around the late 1990s or early 2000s that Roche improved their test strips with a (patented) impedance measurement that allowed a 'hematocrit' correction to be implemented by detecting the red blood cells in the sample and accounting for these in their calibrations, which lead to 'slightly' more accurate results in certain situations. Now whether you could go as far as to say that this impedance correction was actually "EIS spectroscopy" is a matter of semantics... and I would argue was hyperbole.... It was just an AC impedenace measurement. Nothing more.
Now the 'Genultimate' strips that Berman actually sold for use with the One Touch meters did not use ANY impedance based hematocrit correction at all... as those lifescan meters predated that technology becoming freely available, as it was still heavily protected by Roche patents when One Touch Ultra was launched.
Then in the late 2010s, the Roche patents started to term expire and some other manufacturers started exploiting the freedom to operate that this generaed, and they began including impedance based hematocrit correction into their own test systems. But these were basically knock-offs of Roche impedance technology. Old news.
And it was this knock off of twenty year old Roche impedance based hematocrit correction that Berman (or in reality Daniel KIM at the Bio co!) was trying to implement with his "New and groundbreaking" Genultimate TBG product family.
Except he never actually got as far as launching Genultimate TBG.... did he?
He never got it through the regulatory submissions and even if he had done, he was on a hiding to nothing as by then the market was already flooded with cheaper and better versions of the by now quite old smbg technology that Berman was trying to replicate. His smbg business was drying up, and his allegedly 'new' products were already looking pretty dated before he'd even got them off the ground!
But by now he had cooked up some trial meters with the Roche Impedance hematocrit correction capability in them.
And so he claimed he could use these to detect Covid virus in blood. The 'New Story that would allow him to raise millions'
But he couldn't
Firstly, he couldn't detect Covid 19 virus in blood. Because the virus wasn't present in the blood. It was not a blood borne pathogen
Secondly, I am pretty sure that if you COULD reliably detect covid virus with a modified knock off 20 years old Roche rip off glucose meter that easily.... If it was that easy, Roche would have done it!
But You can't. And they didn't!
Finally, while impedance spectrsocopy can detect all sorts of particles, based upon electrical properties and morphology, its really not that very good at distinguishing between them! Is that Covid, or toothpaste? Can't tell. There is a world of difference between a purified sample in a lab and a dirty sample in an endogenous environment.
Now with AI and/or incorporation of biorecognition chemsitry, you could theoretcially one day build an impedance based Covid virus detector, and that might one day work almost as well an immunoassay based lateral flow test.... Why would you?
Absolutely no advantage over a simple lateral flow immunoassay would be conferred by going down a much more technologically convoluted apporach. What would be the point?
In a nutshell, this is how that opening passage should actually read;
Over the last 20 years, he sold
generic test strips that helped diabetics monitor their blood glucose levels.
These devices worked without using any impedance spectroscopy, which is a technology that can detect
the impedance signature of a sample
rawman
7 months ago
It is interesting to note the number of "confused" statements found in Berman's Sentencing Memorandum. IMO, Berman's attorneys, coupled with Berman's imagination, provided their somewhat whacked out view the scam. It likely goes without saying, but their statements were not always truthful. It seems the Berman gang concluded the SEC and/or DOJ would not invest the time and/or effort needed to verify the bogus claims. I bet there are just a few people, you and I included, who could help clarify! And the ridiculous claims about St. Keith always endeavoring to serve mankind, seemed to overlook the many years of BS he spewed related to the diabetic test devices. Apparently Berman's family has abandoned him (remember the crap about needing relief from his bail travel restriction to allow visiting his now estranged son in San Diego?), so this very sickly, broken and broke old man should be instantly freed for time served, as of this coming Friday. The Government wants 10 years and Berman's team is lobbying for 1 year. Hmmm...how about a compromise? 5 years sounds logical to me.
rawman
8 months ago
Oh my! You must be one of the "non-shareholder malcontents" Berman referenced in the "shareholder" letters to the SEC. LOL! It's been fun reading the documents recently added to Pacer, especially the Exhibit Lists! I was reminded Berman threatened to hire a private detective to identify me and get details on "Fredo", the SEC attorney. The Exhibit Lists included literally hundreds of our posts from IHUB. It was a fun trip down memory lane! BTW, the April 5 Government's sentencing document lobbied for a reduced sentence of a meager 10 years in the slammer and 3 years of supervised probation, rather than the actual guideline of potentially over 20 years. FYI, the Government concluded the overall financial losses from the DECN scam exceeded $20mm, potentially up to $68mm. The loss amount, i.e. "in excess of $20mm", is one of the factors used to determine Berman's time behind bars. If memory serves, the actual sentencing is set to happen in the next two or three weeks.
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