David Bergstein Claims Innocence Amid Business-Linked Indictment

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David Bergstein denies wrongdoing in a 2011 business transaction involving the acquisition of a medical billing business with Weston Capital Asset Management.

Prominent businessman David Bergstein denies wrongdoing in a 2011 business transaction related to the investment in a medical billing business involving Weston Capital Asset Management. Bergstein, along with Keith Wellner, a former principal and officer of the now defunct Weston, were charged in an indictment unsealed yesterday in the Southern District of New York and based on the business deal. The allegations in the unsealed indictment concern a narrow business transaction which occurred five years ago. They are unrelated to any of Bergstein’s current business operations or investments.

According to Bergstein’s attorney Steven Jay Katzman, the indictment results from a misunderstanding of the complex business transaction at issue. “Mr. Bergstein went to great lengths to make the medical billing investment a success, including incurring substantial personal expense. The transaction derailed, and Mr. Bergstein pursued civil remedies to enforce his rights. Bergstein was an independent businessman who dealt with Weston in arm’s length transactions through its officers in certain legitimate business transactions, unlike Wellner who was an officer of Weston and fiduciary to its investors. The indictment is largely based on misleading information from third parties affiliated with Weston concerning other larger transactions, some of whom have already been convicted and pled guilty while looking out for their own financial and criminal interests.” (Reference: 08-cr-8000(HBP) Pending in the United States District Court for the Southern District of New York.)

Court records show that the facts underlying the indictment have been the subject of extensive, ongoing civil litigation among various parties. Prior to the unsealing of the indictment, Bergstein’s company sued Wellner, along with Weston and its other principals for fraud arising from Weston’s misrepresentations relative to this matter.

Thomas H. Bienert, Jr., co-counsel for Bergstein, says his client has been aware of the criminal investigation for some time. “We have been in communication with the U.S. Attorney’s office for several months regarding the investigation,” Bienert said. “Mr. Bergstein looks forward to addressing the federal charges in court and having the facts presented accurately.”

Bergstein appeared in federal court in Los Angeles Wednesday afternoon and was released on bond. Further proceedings in this matter will be in New York. Bergstein is represented by Thomas H. Bienert, Jr., Steven Jay Katzman, and Tony Bisconti of Bienert, Miller & Katzman in San Clemente, California.

In re United States of America v. David Bergstein and Keith Wellner, United States District Court, Southern District of New York, Case #: 1:16-cr-00746-PKC-1.

Sources: Bienert, Miller & Katzman, PLC.

About Bienert, Miller & Katzman, PLC

Bienert, Miller & Katzman, PLC is a highly successful firm of trial lawyers with extensive experience in litigation, complex trials, appeals and white collar criminal defense. Bienert, Miller & Katzman is available to provide legal services in matters of criminal, complex civil and bankruptcy matters, among other areas of practice. Learn more at http://www.bmkattorneys.com.

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