bankruptcy reorganization. Xybernaut did have some success selling its technology to retail and hospitality customers such as grocery chain Tesco PLC, as well as government and military, including the U.S. Army. But Tim Shea, a senior analyst at Venture Development Corporation, said that "They've been sowing the seeds pretty well, but part of the problem is that they have this line of [wearable] products that were a little on the big and bulky side and had battery problems." In January 2007, Xybernaut emerged from bankruptcy protection, following a reorganization. In October 2007, Edward and Steven Newman were indicted, along with Xybernaut's former General Counsel, Martin Weisberg, for securities fraud and money laundering in federal district court in Brooklyn, New York. The indictment alleges, among other things, that the Newmans and Weisberg caused Xybernaut to issue hundreds of millions of Xybernaut shares at below market prices to two Israeli business men who, in turn, paid them millions of dollars in secret cash kickbacks. The Israeli business men, Zev Saltsman and Menachem Eiten, were also indicted and were awaiting extradition to the United States. Also included in the indictment is Andrew Broawn, the former President and CEO of Ramp, Inc. Investors who were fleeced by the company and its executives continued to wait for justice to be served and the Israeli businessmen extradited and the Newman brothers sent to prison. In July 2010, Zev Saltsman reportedly entered a "guilty plea by settling parallel civil allegations" and had to forfeit $5 million by order of a judge. $4.5 million was set to be distributed to former shareholders of Xybernaut Corp. The arrangement settled his case with the Securities and Exchange Commission and the United States attorney's office and would not require his deportation. The additional monies would be used by the Xybernaut litigation fund to further legal action against other Xybernaut professionals who may have participated in illegal activities. On January 25, 2017, a final judgment against Edward G. Newman was imposed. He received "a permanent injunction against future violations of certain antifraud provisions of the federal securities laws and bars Newman from serving as an officer and director of a public company." References External links Computer companies established in 1990 Companies formerly listed on the Nasdaq Corporate scandals Ubiquitous computing Defunct computer companies of the United States Defunct companies based in Virginia Companies that filed for Chapter 11 bankruptcy in 2005 1990