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February 6, 2003 — (WEB HOST INDUSTRY REVIEW) — According to reports this week, the US attorney’s office for South Florida has obtained its first convictions in an undercover securities and money laundering fraud investigation known as the Bermuda Short operation, among the men convicted is Bruce Bertman, CEO of Internet services company WorldTeq Group International Inc.
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The Bermuda Short undercover operation reportedly focused on fraudulent trading patterns in publicly held companies, and resulted in the indictment of 58 individuals last year, mostly for securities and money laundering violations.
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Bertman was among the first of those indicted to go to trial, although several other men have already accepted plea agreements in the case, according to reports. The jury reportedly heard evidence that Bertman and the other defendant, Jerry Poole, agreed to pay about $2.5 million in undisclosed kickbacks to undercover agents, who would induce an international mutual fund to pay substantially above-market prices for WorldTeq stock.
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WorldTeq group said in a statement on Thursday that CEO Bertman would be taking a leave of absence after being convicted in the case. He said that his attorneys will be filing a Motion for Judgement of Aquittal Not Withstanding The Verdict, which will be presented to the court on several grounds.
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“In the interest of the company I feel it is better that I step aside while I exercise my appellate rights,” said Bertman “My resignation is in the capacity as CEO only and I will continue to assist the company in anyway I can. It should further be noted that I was convicted of a victimless crime through a ‘sting’ which I will further explain at another time on the advice of counsel.”
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Bertman and Poole are scheduled to be sentenced April 18, and are facing decades of prison time.
