Joseph Stevens Indictment

SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
THE PEOPLE OF THE STATE OF NEW YORK
- against-
JOSEPH STEVENS & COMPANY, INC.

JOSEPH SORBARA
STEVEN MARKOWITZ
CRAIG SHAPIRO
JOHN MORAITIS
MASSIMO MARTINUCCI
PETER ORTHOS
ALAN FERRARO
CHARLES RASPA
SCOTT TIERNEY
JOI-IN MICCIOLA
STEVEN SCARCELLA
MICHAEL TRIPODI
DOUGLAS COSTABILE
JAMES RATHGEBER
MATTHEW MENIES
HAJRADIN MUCOVIC, a/k/a HARRY MUCOVIC,
Defendants.
THE GRAND JURY OF THE COUNTY 0 F NEW YORK, by this
indictment, accuse the defendants of the crime of ENTERPRISE CORRUPTION, in
violation of Penal Law Section 460.20(1)(a), committed as follows:
Defendants, in the County of New York, from in or about January 2001 through
in or about December 2005, having knowledge of the existence of a criminal enterprise
and the nature of its activities, and being employed by and associated with such
enterprise, intentionally conducted and participated in the affairs of an enterprise by
participating in a pattem of criminal activity.
1
The criminal enterprise was a group of persons, including all of the defendants,
and others known and unknown to the grand jury, sharing a common purpose of engaging
in criminal conduct, associated in an ascertainable structure distinct from a pattern of
criminal activity, and with a continuity of existence, structure and purpose beyond the
scope of individual criminal incidents.
Purpose
Defendants were Joseph Stevens & Company, Inc., (hereinafter "JSC") its
principals, traders, and stockbrokers. The common purpose of defendants and the other
members of the criminal enterprise was to engage in criminal conduct, including
securities fraud as defined in General Business Law Section 352-c, Grand Larceny as
defined in Penal Law Article 155, Criminal Possession of Stolen Property as defined in
Penal Law Article 165, and Falsifying Business Records as defined in Penal Law Article
175, to carry out fraudulent schemes which enabled them to artificially raise, maintain,
and manipulate the prices of certain securities (hereinafter "Scheme Stocks").
Defendants engaged in a scheme to induce customers to buy and sell shares of the
Scheme Stocks in order to illegally maximize profits for themselves, at the expense of
their customers. Defendants knew that their intent to artificially raise, maintain, and
manipulate the prices of the Scheme Stocks was never disclosed to JSC customers, and
that their motivation for recommending the stocks was to earn extra and illegal,
undisclosed profits. Defendants knew that they could gamer extra and illegally inflated
profits by this scheme, and they knew that any such disclosure would likely cause
customers to refuse to buy and sell such stocks. Defendants committed these crimes to
2
generate illegally inflated profits shared among the principals, traders, and brokers of the
criminal enterprise.
Among other methods, defendants induced customers to buy Scheme Stocks by
intentionally misrepresenting and concealing their true motivations for recommending the
stocks. Defendants solicited new accounts and falsified documents relating to these new
accounts in order to facilitate these manipulative practices. Defendants induced their
customers to invest in Scheme Stocks and delayed executing customer orders until an
inflated price was achieved. Defendants then executed the customer orders at artificially
inflated prices, thereby generating money the defendants subsequently shared. In effect,
JSC customers paid more than they should have when buying stocks and received less
than they should have when selling stocks because defendants intentionally handled their
trades with the specific purpose of making extra illegal money for themselves.
Defendants never disclosed to their customers their intent to artificially raise the
price of the Scheme Stocks, nor their true motivations for recommending Scheme Stocks.
Defendants never disclosed the profits the criminal enterprise made from the customers'
trades of Scheme Stocks, nor any other aspect of the' common criminal purpose of the
criminal enterprise, because defendants knew that any such disclosure would likely cause
customers to refuse to buy and sell the Scheme Stocks.
Structure and Continuity
In or about 200 1, the principals, traders and brokers working at JSC began
coordinating efforts and colluded to buy and sell shares in Scheme Stocks, manipulating
the prices of these Scheme Stocks upwards, and at times downwards, in order to capture
3
extra and illegal profits on JSC customer purchases and sales. The manipulations were
conducted and trades were executed with the full knowledge and material assistance of
the firm's principals. JSC was headquartered in New York County, and operated
additional branch offices in Long Island, Staten Island and New Jersey. The criminal
enterprise shared, operated, and flourished within JSC's structure, including among other
things, JSC's corporate form, regulatory status, office locations, and clearing broker
relationship. Within JSC, members of the criminal enterprise were organized into groups
based primarily on their branch location and position within the corporate structure.
The principals supervised and colluded with traders and brokers in all branches,
gave them access to the Scheme Stocks that were manipulated, recruited and hired traders
and brokers who were willing and able to carry out the schemes so that the criminal
enterprise could operate effectively, and became directly involved in resolving problems
and disputes that arose when the schemes were not profitably carried out.
The traders coordinated and colluded with brokers to manipulate the Scheme
Stocks by, among other things: obtaining advance order commitments from brokers,
which allowed traders to know in advance how much of a given Scheme Stock the
brokers could later sell to or buy from their customers; accumulating and selling shares of
a Scheme Stock and using trading techniques to time and control when and in what
quantities to buy and sell a Scheme Stock, in advance of the already obtained customer
orders; delaying the execution of customer orders until such time as the trader had
successfully manipulated the price of the stock to a less advantageous price for the
customer; and executing customer orders at or near the worst price of the day to the
4
customer, thereby creating an artificially inflated and illegal profit that the members of
the criminal enterprise shared.
The brokers coordinated and colluded with traders prior to the traders'
manipulations of the Scheme Stocks by agreeing to sell and buy a certain number of
shares of the Scheme Stocks for their customers; by soliciting their customers to buy and
sell a certain number of shares of the Scheme Stocks; without the knowledge and consent
of their customers, delaying executing customer orders in order to give the trader the time
needed to manipulate the price of the stock to the detriment of the customer; by
coordinating with the trader when and how to enter the customer's order so that the trader
had the time needed to manipulate the price of the stock higher or lower to benefit the
defendants; by conveying to their customers that customer orders had been executed but
failing to disclose that they had delayed executing the trade and that a less favorable price
had been given to the customer as a result of the delay; and by repeatedly engaging in
transactions with the same traders and Scheme Stocks and specifically delaying such
orders without the consent and knowledge of the customers and knowingly receiving and
sharing with the traders inflated and illegal profits generated as a result of the traders'
manipulation of the price of the stock.
Throughout the period of this indictment the defendants had the following roles
within the structure of the criminal enterprise:
defendant JOSEPH STEVENS & COMPANY, INC. was a
brokerage firm that provided a location, structure, clearing relationship
and regulatory status for the sale and purchase of the Scheme Stocks and
was co-managed by the principals of the criminal enterprise;
5
defendants SORBARA and MARKOWITZ were the principals of
JSC and the managers of the traders, brokers, accounting, compliance and
operations staff of the criminal enterprise, including all of the defendants,
and they supervised the activity in the stocks that were used to generate
unlawful profits and shared in those profits with other members of the
criminal enterprise;
defendants SHAPIRO, MORAITIS and MARTINUCCI were
traders in charge of informing brokers of what Scheme Stock would be
manipulated on which day, delayed executing customer orders,
manipulated the price of the Scheme Stocks upward or downward, and
executed customer orders brought in by the various members of the
criminal enterprise to generate unlawful trading profits that were shared by
members of the criminal enterprise; and,
defendants ORTHOS, FERRARO, RASPA, TIERNEY,
MICCIOLA, SCARCELLA, TRIPODI, COSTABILE, RATHGEBER,
MENIES and MUCOVIC were brokers who coordinated with traders to
sell and buy Scheme Stocks to and from their customers by giving
advanced commitments of the number of shares they would sell to or buy
from their customers, without the consent and knowledge of their
customers, delayed entering and executing customer orders until such time
as the trader had successfully manipulated the price of the Scheme Stock,
and executed customer orders at a price unfavorable to their customers to
6
generate illegally inflated profits that were shared by members of the
criminal enterprise.
PATTERN OF CRIMINAL ACTIVITY
Defendants, with intent to participate in and advance the affairs of the criminal
enterprise, participated in a pattern of criminal activity by engaging in conduct
constituting, and by being criminally liable for, criminal acts included within the pattern
of criminal activity as follows:
7
Criminal Act 1
Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO, RASPA, TIERNEY, TRIPODI,
COSTABILE, RATHGEBER, MENIES and MUCOVIC committed the crime of
securities fraud in violation of General Business Law Section 352-c(5), as follows:
Said defendants, in the County of New York, from on or about January 1,2001 to
on or about April 1, 2005, intentionally engaged in a scheme constituting a systematic
ongoing course of conduct with intent to defraud at least ten persons and to obtain
property from at least ten persons by false and fraudulent pretenses, representations and
promises, and so obtained property from at least one such person while engaged in
inducing and promoting the issuance, distribution, exchange, sale, negotiation and
purchase of securities, to wit, securities issued by Antigenics, Inc. ("AGEN").
Criminal Act 2

MARKOWITZ, SHAPIRO, FERRARO, TRIPODI, COSTABILE, RATHGEBER,
MENIES and MUCOVIC committed the crime of securities fraud in violation of
General Business Law Section 352-c(5), as follows:
Said defendants, in the County of New York, from on or about April 15,2003 to
on or about August 18, 2004, intentionally engaged in a scheme constituting a systematic
property from at least ten persons by false and fraudulent pretenses, representations and·
purchase of securities, to wit, securities issued by Cypress Biosciences, Inc. ("CYPB").
8
Criminal Act 3

MARKOWITZ, SHAPIRO, FERRARO and MUCOVIC committed the crime of
Said defendants, in the County of New York, from on or about November 30,
2004 to on or about March 16, 2005, intentionally engaged in a scheme constituting a
systematic ongoing course of conduct with intent to defraud at least ten persons and to
obtain property from at least ten persons by false and fraudulent pretenses,
representations and promises, and so obtained property from at least one such person
while engaged in inducing and promoting the issuance, distribution, exchange, sale,
negotiation and purchase of securities, to wit, securities issued by Discovery
Laboratories, Inc. ("DSCO").
Criminal Act 4
Defendants JOSEPH STEVENS & CO. INC., SORBARA, MARKOWITZ,

SHAPIRO, ORTHOS, FERRARO, COSTABILE, and RATHGEBER committed the
crime of securities fraud in violation of General Business Law Section 352-c(5), as
follows:
2004 to on or about April 25, 2005, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Focus Enhancements,
Inc. ("FCSE").
9
Criminal Act 5

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO, RATHGEBER and MUCOVIC
committed the crime of securities fraud in violation of General Business Law Section
352-c(5), as follows:
Said defendants, in the County of New York, from on or about June 10, 2003 to
on or about December 26, 2003, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Progen Industries, Ltd.
("PGLAF").
Criminal Act 6
Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA, MARKOWITZ,

SHAPIRO, ORTHOS, FERRARO, TRIPODI, COSTABILE, MENIES and MUCOVIC
on or about February 3, 2004, intentionally engaged in a scheme constituting a systematic
purchase of securities, to wit, securities issued by Repligen Corp. ("RGEN").
10
Criminal Act 7

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO and COSTABILE committed the
follows:
Said defendants, in the County of New York, from on or about May 10, 2004 to
on or about June 23, 2005, intentionally engaged in a scheme constituting a systematic
purchase of securities, to wit, securities issued by Tapestry Pharmaceuticals, Inc.
("TPPH").
Criminal Act 8

MARKOWITZ, MORAITIS, ORTHOS, FERRARO, RASPA, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI and MENIES committed the crime of securities fraud in
violation of General Business Law Section 352-c(5), as follows:
Said defendants, in the County of New York, from on or about March 1, 2005 to
on or about September 8, 2005, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Arpeggio Acquisition
Corp. ("APGO").
11
Criminal Act 9

MARKOWITZ, MORAITIS, ORTHOS, RASPA, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI and RATHGEBER committed the crime of securities fraud in
violation of General Business Law Section 352-c(S), as follows:
Said defendants, in the County of New York, from on or about January 26, 2005
to on or about December 6, 2005, intentionally engaged in a scheme constituting a
Corp. (Warrants) ("APGOW").
Criminal Act 10

SCARCELLA, TRIPODI, COSTABILE, RATHGEBER and MENIES committed the
follows:
Said defendants, in the County of New York, from on or about January 27,2005
to on or about November 4, 2005, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by CEA Acquisition Corp.
("CEAC").
12
Criminal Act 11

SCARCELLA, TRIPODI, COSTABILE, and RATHGEBER committed the crime of
Said defendants, in the County of New York, from on or about December 30,
2004 to on or about December 5, 2005, intentionally engaged in a scheme constituting a
(Warrants) ("CEACW").
Criminal Act 12

MARKOWITZ, MORAITIS, ORTHOS, TRIPODI, COSTABILE and MUCOVIC
Said defendants, in the County of New York, from on or about September 30,
2003 to on or about May 18, 2004, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Forbes Medi-Tech, Inc.
("FMTI").
13
Criminal Act 13
Defendants JOSEPH STEVENS &. COMPANY, INC., SORBARA,

MARKOWITZ, MORAITIS, ORTHOS, FERRARO, RASPA, TIERNEY and TRIPODI
Said defendants, in the County of New York, from on or about April 2, 2003 to on
or about October 4, 2005, intentionally engaged in a scheme constituting a systematic
purchase of securities, to wit, securities issued by Manhattan Pharmaceuticals, Inc.
("MHTT," also kno'vvn as "MHA").
Criminal Act 14

MARKOWITZ, MARTINUCCI, ORTHOS and RASPA committed the crime of
Said defendants, in the County of New York, from on or about April 27, 2005 to
on or about November 2, 2005, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Ardent Acquisition
Corp. (Warrants) ("AACQW").
14
Criminal Act 15

MARKOWITZ, MARTINUCCI, RASPA, TIERNEY, MICCIOLA and SCARCELLA
Said defendants, in the County of New York, from on or about February 9, 2004
negotiation and purchase of securities, to wit, securities issued by BioDelivery Sciences
International, Inc. ("BDSI").
Criminal Act 16

MARKOWITZ, MARTINUCCI, ORTHOS, RASPA and TIERNEY committed the
follows:
Said defendants, in the County of New York, from on or about July 14, 2003 to
negotiation and purchase of securities, to wit, securities issued by CytRx Corp.
("CYTR").
15
Criminal Act 17

MARKOWITZ, MARTINUCCI, ORTHOS, FERRARO, RASPA, TIERNEY,
MICCIOLA, SCARCELLA, TRIPODI, COSTABILE and RATHGEBER committed the
follows:
Said defendants, in the County of New York, from on or about January 8, 2003 to
negotiation and purchase of securities, to wit, securities issued by Datatec Systems, Inc.
("DATC").
Criminal Act 18

MARKOWITZ, MARTINUCCI, RASPA, TIERNEY, MICCIOLA, SCARCELLA,
TRIPODI and RATHGEBER committed the crime of securities fraud in violation of
General Business Law Section 352-c(5), as follows:
Said defendants, in the County of New Yark, from on or about October 20, 2003
negotiation and purchase of securities, to wit, securities issued by Sonic Foundry, Inc.
("SOFO").
16
Criminal Act 19

MARKOWITZ, MARTINUCCI, FERRARO, RASPA, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI, COSTABILE, RATHGEBER and MENIES committed the
follows:
negotiation and purchase of securities, to wit, securities issued by Star Scientific, Inc.
("STSI").
Criminal Act 20

MARKOWITZ, SHAPIRO, FERRARO AND MUCOVIC committed the crime of
Criminal Possession of Stolen Property in the Third Degree in violation of Penal
Law 165.50 as follows:
Said defendants, in the County of New York, on or about November 26, 2003,
knowingly possessed stolen property, to wit: money generated as a result of the
manipulation of Antigenics, Inc. ("AGEN"), with the intent to benefit themselves or a
person other than an owner thereof and to impede the recovery by an owner thereof, and
the value of the property exceeded three thousand dollars.
17
Criminal Act 21

MARKOWITZ, SHAPIRO, COSTABILE AND MUCOVIC committed the crime of
Criminal Possession of Stolen Property in the Second Degree in violation of Penal
Said defendants, in the County of New York, on or about August 17, 2004,
the value of the property exceeded fifty thousand dollars.
Criminal Act 22

MARKOWITZ, SHAPIRO, FERRARO, RATHGEBER and MUCOVIC committed the
crime of Criminal Possession of Stolen Property in the Second Degree in violation of
Penal Law 165.52 as follows:
Said defendants, in the County of New York, on or about July 17, 2003,
manipulation of Cypress Biosciences, Inc. ("CYPB"), with the intent to benefit
themselves or a person other than an owner thereof and to impede' the recovery by an
owner thereof, and the value of the property exceeded fifty thousand dollars.
18
Criminal Act 23

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO, RATHGEBER and MUCOVIC
committed the crime of Criminal Possession of Stolen Property in the Second Degree
in violation of Penal Law 165.52 as follows:
manipulation of Progen Industries, Ltd. ("PGLAF"), with the intent to benefit themselves
or a person other than an owner thereof and to impede the recovery by an owner thereof,
and the value of the property exceeded fifty thousand dollars.
Criminal Act 24

MARKOWITZ, SHAPIRO and MUCOVIC committed the cnme of Criminal
Possession of Stolen Property in the Third Degree in violation of Penal Law 165.50
as follows:
Said defendants, in the County of New York, on or about October 24, 2003,
manipulation of Repligen Corp. ("RGEN"), with the intent to benefit themselves or a
19
Criminal Act 25

MARKOWITZ, SHAPIRO and MUCOVIC committed the cnme of Criminal
as follows:
manipulation of TIl Network Technologies, Inc. ("Till"), with the intent to benefit
themselves or a person other than an owner thereof and to impede the recovery by an
owner thereof, and the value of the property exceeded three thousand dollars.
Criminal Act 26

MARKOWITZ, SHAPIRO and ORTHOS committed the crime of Criminal Possession
of Stolen Property in the Third Degree in violation of Penal Law 165.50 as follows:
Said defendants, in the County of New York, on or about December 27, 2004,
manipulation of Tapestry Pharmaceuticals, Inc. ("TPPH"), with the intent to benefit
20
Criminal Act 27

MARKOWITZ and SHAPIRO committed the crime of Criminal Possession of Stolen
Property in the Third Degree in violation of Penal Law 165.50 as follows:
Said defendants, in the County of New York, on or about January 28, 2005,
Criminal Act 28

MARKOWITZ, SHAPIRO, FERRARO and MUCOVIC committed the crime of
manipulation of Discovery Laboratories, Inc. ("DSCO"), with the intent to benefit
21
Criminal Act 29

MARKOWITZ, SHAPIRO, ORTHOS and FERRARO committed the crime of Criminal
Possession of Stolen Property in the Fourth Degree in violation of Penal Law
165.45(1) as follows:
manipulation of Focus Enhancements, Inc. ("FCSE"), with the intent to benefit
owner thereof, and the value of the property exceeded one thousand dollars.
Criminal Act 30

MARKOWITZ, MORAITIS and MUCOVIC committed the cnme of Criminal
as follows:
Said defendants, in the County of New York, on or about September 30, 2003,
manipulation of Forbes Medi-Tech, Inc. ("FMTI"), with the intent to benefit themselves
and the value of the property exceeded three thousand dollars.
22
Criminal Act 31

MARKOWITZ and MORAITIS committed the crime of Criminal Possession of Stolen
Said defendants, in the County of New York, on or about February 10, 2004,
manipulation of Valentis, Inc. ("VLTS"), with the intent to benefit themselves or a person
other than an owner thereof and to impede the recovery by an owner thereof, and the
value of the property exceeded three thousand dollars.
Criminal Act 32

MARKOWITZ, MORAITIS, FERRARO and MUCOVIC committed the crime of
Said defendants, 111 the County of New York, on or about June 29, 2004,
manipulation of Manhattan Pharmaceuticals, Inc. ("MHTT," also known as "MHA"),
with the intent to benefit themselves or a person other than an owner thereof and to
impede the recovery by an owner thereof, and the value of the property exceeded three
thousand dollars.
23
Criminal Act 33

MARKOWITZ, MORAITIS, RASPA, TIERNEY, MICCIOLA AND SCARCELLA
committed the crime of Criminal Possession of Stolen Property in the Third Degree
manipulation of CEA Acquisitions Corp. (Warrants) ("CEACW"), with the intent to
benefit themselves or a person other than an owner thereof and to impede the recovery by
an owner thereof, and the value of the property exceeded three thousand dollars.
Criminal Act 34

MARKOWITZ, MORAITIS, RASPA, TIERNEY and TRIPODI committed the crime of
Said defendants, in the County of New Yark, on or about February 25, 2005,
benefit themselves ar a person other than an owner thereof and to impede the recovery by
24
Criminal Act 35
MARKOWITZ, MORAITIS, RASPA, TIERNEY, MICCIOLA, SCARCELLA and
TRIPODI committed the crime of Criminal Possession of Stolen Property in the
Fourth Degree in violation of Penal Law 165.45(1) as follows:
Said defendants, in the County of New York, on or about March 1, 2005,
an owner thereof, and the value of the property exceeded one thousand dollars.
Criminal Act 36

MARKOWITZ, MORAITIS and MENIES committed the crime of Criminal Possession
Said defendants, in the County of New York, on or about April 7, 2005,
manipulation of CEA Acquisitions Corp. ("CEAC"), with the intent to benefit themselves
Criminal Act 37

MARKOWITZ, MORAITIS, ORTHOS and MENIES committed the crime of Criminal
as follows:
25
Criminal Act 38

MARKOWITZ, MORAITIS, RASPA, TIERNEY and TRIPODI committed the crime of
Said defendants, m the County of New York, on or about March 11, 2005,
manipulation of Arpeggio Acquisitions Corp. (Warrants) ("APGOW"), with the intent to
Criminal Act 39
Defendants JOSEPH STEVENS & COMPANY, INC.,· SORBARA,

MARKOWITZ, MORAITIS, RASPA and TIERNEY committed the crime of Criminal
165.45(1) as follows:
Said defendants, In the County of New York, on or about April 6, 2005,
26
Criminal Act 40

MARKOWITZ, MORAITIS and MENIES committed the crime of Criminal Possession
Said defendants, in the County of New York, on or about May 27, 2005,
manipulation of Arpeggio Acquisitions Corp. ("APGO"), with the intent to benefit
Criminal Act 41

MARKOWITZ, MORAITIS, RASPA, TIERNEY and RATHGEBER committed the
crime of Criminal Possession of Stolen Property in the Fourth Degree in violation of
Penal Law 165.45(1) as follows:
27
Criminal Act 42

MARKOWITZ, MARTINUCCI and ORTHOS committed the CrIme of Criminal
as follows:
manipulation of Ardent Acquisition Corp. (Warrants) ("AACQW"), with the intent to
Criminal Act 43

MARKOWITZ, MARTINUCCI and ORTHOS committed the CrIme of Criminal
as follows:
manipulation of Aldabra Acquisition Corp. (Warrants) ("ALBAW"), with the intent to
28
Criminal Act 44

MARKOWITZ, MARTINUCCI, RASPA, TIERNEY, MICCIOLA and SCARCELLA
manipulation of BioDelivery Sciences International, Inc. ("BDSI"), with the intent to
Criminal Act 45

MARKOWITZ, MARTTI\TUCCI, RASPA and TIERNEY committed the crime of
Criminal Possession of Stolen Property in the Fourth Degree in violation of Penal
Law 165.45(1) as follows:
manipulation of CytRx Corp. ("CYTR"), with the intent to benefit themselves or a person
value of the property exceeded one thousand dollars.
29
Criminal Act 46

MARKOWITZ, MARTINUCCI, RASPA and TIERNEY committed the crime of
manipulation of CytRx Corp. ("CYTR"), with the intent to benefit themselves ar a person
value ofthe property exceeded one thousand dollars.
Criminal Act 47

Said defendants, In the County of New Yark, on or about April 26, 2005,
30
Criminal Act 48

Said defendants, 111 the County of New York, on or about April 28, 2005,
manipulation of CytRx Corp. ("CYTR"), with the intent to benefit themselves or a person'
Criminal Act 49

Said defendants, 111 the County of New York, on or about April 29, 2005,
31
Criminal Act 50
Defendants JOSEPH STEVENS & COMPANY, ll\IC., SORBARA,
MARKOWITZ, MARTINUCCI, ORTHOS, RASPA, TIERNEY and RATHGEBER
manipulation of Datatec Systems, Inc. ("DATC"), with the intent to benefit themselves or
a person other than an owner thereof and to impede the recovery by an owner thereof,
Criminal Act 51

MARKOWITZ, MARTINUCCI, MICCIOLA and SCARCELLA committed the crime of
Said defendants, in the County of New York, on or about December 31,2003,
manipulation of Sonic Foundry, Inc. ("SOFO"), with the intent to benefit themselves or a
the value of the property exceeded one thousand dollars.
32
Criminal Act 52

MARKOWITZ, MARTINUCCI, MICCIOLA and SCARCELLA committed the crime of
Criminal Act 53

MARKOWITZ, MARTIN1JCCI, MICCIOLA, SCARCELLA, COSTABILE,
RATHGEBER and MENIES committed the crime of Criminal Possession of Stolen
knov,ringly possessed stolen property, to wit: money generated as a result of the
manipulation of Star Scientific, Inc. ("STSI"), with the intent to benefit themselves or a
33
Criminal Act 54

MARKOWITZ and ORTHOS committed the crime of Grand Larceny in the Third
Degree in violation of Penal Law Section 155.35 as follows:
on or about November 14, 2005, stole property, to wit, money, from Seymour Kessler,
Criminal Act 55

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and ORTHOS committed the
follows:
on or about November 14, 2005, intentionally engaged in fraud, deception, concealment,
suppression, false pretense and fictitious and pretended purchase and sale, and with intent
to deceive and defraud, made material false representations and statements, while
engaged in inducing and promoting the issuance, distribution, exchange, sale, negotiation
and purchase within and from New York of securities, and thereby wrongfully obtained
property of a value in excess of two hundred fifty dollars from Seymour Kessler.
34
Criminal Act 56

MARKOWITZ and ORTHOS committed the crime of Grand Larceny in the Second
Degree in violation of Penal Law Section 155.40(1), as follows:
to on or about May 24, 2005, stole property, to wit, money, from Jean Melchior, and the
value of the property exceeded fifty thousand dollars.
Criminal Act 57

follows:
to on or about May 24, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Jean Melchior.
Criminal Act 58

MARKOWITZ and RATHGEBER committed the crime of Falsifying Business Records
in the First Degree in violation of Penal Law Section 175.10, as follows:
Said defendants, in the County of New York, on or about May 16, 2001, with
intent to defraud, and with intent to commit another crime and to aid and conceal the
35
commission thereof, made and caused to be made a false entry in the business records of
an enterprise, to wit, a New Account Application for Joseph Stevens & Company, Inc.
Criminal Act 59

MARKOWITZ and ORTHOS committed the crime of Falsifying Business Records in
the First Degree in violation of Penal Law Section 175.10, as follows:
Said defendants, in the County of New York, on or about August 15, 2002, with
Criminal Act 60

Said defendants, in the County of New York, from on or about March 24,2003 to
on or about March 25, 2004, stole property, to wit, money, from James Morris, and the
Criminal Act 61

MARKOWITZ, SHAPIRO, MARTH'WCCI and ORTHOS committed the crime of
on or about March 25, 2004, intentionally engaged in fraud, deception, concealment,
36
and purchase within and from New Yark of securities, and thereby wrongfully obtained
property of a value in excess of two hundred fifty dollars from James Morris.
Criminal Act 62

Said defendants, in the County of New York, from on or about February 18,2004
to on or about August 30, 2005, stole property, to wit, money, from Barry Saxe, and the
Criminal Act 63

follows:
to on or about August 30, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Barry Saxe.
37
Criminal Act 64

MARKOWITZ and FERRARO committed the crime of Grand Larceny in the Third
to on or about April 8, 2005, stole property, to wit, money, from Edward Ball, and the
value ofthe property exceeded three thousand dollars.
Criminal Act 65

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and FERRARO committed the
follows:
to on or about April 8, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Edward Ball.
Criminal Act 66

38
on or about June 14, 2004, stole property, to wit, money, from Jeffrey Daniels, and the
Criminal Act 67

follows:
Said defendants, in the County of New York, from on or about January 7, 200"3 to
on or about June 14, 2004, intentionally engaged in fraud, deception, concealment,
and purchase within and from New York of securities, and thereby \vrongfully obtained
property of a value in excess of two hundred fifty dollars from Jeffrey Daniels.
Criminal Act 68

or about AprilS, 2005, stole property, to wit, money, from Roger Erickson, and the value
of the property exceeded three thousand dollars.
39
Criminal Act 69

follows:
or about April 5, 2005, intentionally engaged in fraud, deception, concealment,
and purchase within and from New York of securities, and thereby vvrongfully obtained
property of a value in excess of two hundred fifty dollars from Roger Erickson.
Criminal Act 70

MARKOWITZ, RASPA and TIERNEY committed the crime of Grand Larceny in the
Third Degree in violation of Penal Law Section 155.35 as follows:
to on or about November 30, 2005, stole property, to wit, money, from Robert Arnold,
40
Criminal Act 71

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI, RASPA and TIERNEY
Said defendal1ts, in the County of New York, from on or about January 22, 2003
to on or about November 30, 2005, intentionally engaged in fraud, deception,
concealment, suppression, false pretense and fictitious and pretended purchase and sale,
and with intent to deceive and defraud, made material false representations and
statements, while engaged in inducing and promoting the issuance, distribution,
exchange, sale, negotiation and purchase within and from New York of securities, and
thereby wrongfully obtained property of a value in excess of two hundred fifty dollars
from Robert Arnold.
Criminal Act 72

Second Degree in violation of Penal Law Section 155.40(1), as follows:
to on or about March 29, 2005, stole property, to wit, money, from Mark Berkowitz, and
41
Criminal Act 73

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI, RASPA and TIERNEY
to on or about March 29, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Mark Berkowitz.
Criminal Act 74

MARKOWITZ and RASPA committed the crime of Falsifying Business Records in the
First Degree in violation of Penal Law Section 175.10, as follows:
42
Criminal Act 75

Criminal Act 76

Criminal Act 77

Said defendants, in the County of New York, on or about September 3,2002, with
43
Criminal Act 78

Said defendants, in the County of New York, on or about September 3, 2002, with
Criminal Act 79

MARKOWITZ and RASP A committed the crime of Falsifying Business Records in the
intent to defraud, and with intent to commit another crime and fo aid and conceal the
Criminal Act 80

44
Criminal Act 81

Criminal Act 82

Criminal Act 83

MARKOWITZ and TIERNEY committed the crime of Falsifying Business Records in
Said defendants, in the County of New York, on or about July 17, 2003, with
45
Criminal Act 84

with intent to defraud, and with intent to commit another crime and to aid and conceal the
Criminal Act 85

on or about September 30, 2005, stole property, to wit, money, from Berkowitz and
Garfinkel D.D.S., P.A. Employees Pension Plan, and the value of the property exceeded
three thousand dollars.
Criminal Act 86

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI, RASPA, and TIERNEY
on or about September 30, 2005, intentionally engaged in fraud, deception, concealment,
46
property of a value in excess of two hundred fifty dollars from Berkowitz and Garfinkel
D.D.S., P.A. Employees Pension Plan.
Criminal Act 87

Said defendants, in the County of New York, on or about July 3, 2003, with intent
to defraud, and with intent to commit another crime and to aid and conceal the
Criminal Act 88

MARKOWITZ and RASP A committed the crime of Falsifying Business Records in the
Said defendants, in the County of New York, on or about October 8, 2004, with
47
Criminal Act 89

on or about February 7, 2005, stole property, to wit, money, from Vincent Keating, and
Criminal Act 90

on or about February 7, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Vincent Keating.
Criminal Act 91

Said defendants, in the County of New York, on or about February 7, 2005, with
48
Criminal Act 92

on or about May 24, 2005, stole property, to wit, money, from Lester Krasno, and the
Criminal Act 93

on or about May 24, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Lester Krasno.
49
Criminal Act 94

Said defendants, in the County of New York, on or about March 12, 2002, with
Criminal Act 95

Criminal Act 96

MARKOWITZ, RASP A and TIERNEY committed the crime of Grand Larceny in the
Said defendants, in the County of New York, from on or about May 13,2003 to
on or about November 17,2004, stole property, to wit, money, from Dale Wilson, and the
value of the prope11y exceeded fifty thousand dollars.
50
Criminal Act 97

property of a value in excess of two hundred fifty dollars from Dale Wilson.
Criminal Act 98

Said defendants, in the County of New York, on or about April 25, 2003, with
Criminal Act 99

Said defendants, in the County of New York, on or about April 25, 2003, with
51
Criminal Act 100

Said defendants, in the County of New York, on or about February 19,2004, with
Criminal Act 101

MARKOWITZ, MICCIOLA and SCARCELLA committed the crime of Grand Larceny
in the Second Degree in violation of Penal Law Section 155.40(1), as follows:
on or about December 1, 2005, stole property, to wit, money, from Eileen Williams, and
Criminal Act 102

MARKOWITZ, MORAITIS, MARTfNUCCI, MICCIOLA and SCARCELLA
on or about December 1, 2005, intentionally engaged in fraud, deception, concealment,
52
property of a value in excess of two hundred fifty dollars from Eileen Williams.
Criminal Act 103

MARKOWITZ and SCARCELLA committed the crime of Falsifying Business Records
Criminal Act 104

53
Criminal Act 105

Criminal Act 106

Criminal Act 107

in the Second Degree in violation of Penal Law Section 155.40(1), as follows:
on or about November 22, 2005, stole property, to wit, money, from Infectious Disease
Consultants, P.A. Profit Sharing Plan, and the value of the property exceeded fifty
thousand dollars.
54
Criminal Act 108

MARKOWITZ, MORAITIS, MARTINUCCI, MICCIOLA and SCARCELLA
property of a value in excess of two hundred fifty dollars from Infectious Disease
Consultants, P.A. Profit Sharing Plan.
Criminal Act 109

MARKOWITZ and MICCIOLA committed the crime of Falsifying Business Records in
Criminal Act 110

55
Criminal Act 111

MARKOWITZ, MICCIOLA and .SCARCELLA committed the crime of Grand Larceny
in the Third Degree in violation of Penal Law Section 155.35 as follows:
2003 to on or about March 8, 2005, stole property, to wit, money, from David Krasner,
Criminal Act 112

2003 to on or about March 8, 2005, intentionally engaged in fraud, deception,
from David Krasner.
56
Criminal Act 113

Said defendants, in the County of New York, on or about June 4, 2003, with
Criminal Act 114

iv1ARKOWITZ and SCARCELLA committed the crime of Falsifying Business Records
Said defendants, in the County of New York, on or about July 29, 2003, with
Criminal Act 115

57
Criminal Act 116

in the Third Degree in violation of Penal Law Section 155.35 as follows:
Said defendants, in the County of New York, from on or about August 25,2003 to
on or about May 19,2005, stole property, to wit, money, from James Ley, and the value
Criminal Act 117

Said defendants, in the County of New York, from on or about August 25, 2003 to
property of a value in excess of two hundred fifty dollars from James Ley.
Criminal Act 118

58
Criminal Act 119

MARKOWITZ, and TRIPODI committed the crime of Grand Larceny in the Third
on or about December 2, 2005, stole property, to wit, money, from Charles Morse, and
Criminal Act 120

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI, TPJPODI committed the
follows:
property of a value in excess of two hundred fifty dollars from Charles Morse.
59
Criminal Act 121

MARKOWITZ, and TRIPODI committed the crime of Grand Larceny in the Third
Said defendants, in the County of New Yark, from on or about April 4, 2003 to on
or about October 5, 2005, stole property, to wit, money, from Edward Winstead, and the
Criminal Act 122

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and TRIPODI committed the
follows:
or about October 5, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Edward Winstead.
60
Criminal Act 123

MARKOWITZ, and COSTABILE committed the crime of Grand Larceny in the Third
on or about August 12, 2004, stole property, to wit, money, from Abraham Khajeie, and
Criminal Act 124

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and COSTABILE committed
the crime of securities fraud in violation of General Business Law Section 352-c(6), as
follows:
on or about August 12, 2004, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Abraham Khajeie.
61
Criminal Act 125

MARKOWITZ and RATHGEBER committed the crime of Grand Larceny in the
on or about November 2, 2005, stole property, to wit, money, from Lester Boelter, and
Criminal Act 126

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and RATHGEBER committed
follows:
property of a value in excess of two hundred fifty dollars from Lester Boelter.
Criminal Act 127

Said defendants, in the County of New York, on or about June 21, 2002, with
62
Criminal Act 128

Said defendants, in the County of New York, on or about December 9,2004, with
Criminal Act 129

63
Criminal Act 130

MARKOWITZ, and RATHGEBER committed the crime of Grand Larceny in the
on or about November 15, 2005, stole property, to wit, money, from Jeffrey Davis, and
the value ofthe property exceeded tln'ee thousand dollars.
Criminal Act 131

MARKOWITZ, MORAITIS, MARTINUCCI and RATHGEBER committed the crime of
Said defendants, in the County of New York, on or about August 29,2005 to on
or about November 15, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Jeffrey Davis.
64
Criminal Act 132

MARKOWITZ and RATHGEBER committed the crime of Grand Larceny in the
on or about November 5, 2004, stole property, to wit, money, from William Herbes, and
Criminal Act 133

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and RATHGEBER committed
follows:
property of a value in excess of two hundred fifty dollars from William Herbes.
65
Criminal Act 134

MARKOWITZ and MENIES committed the crime of Grand Larceny in the Second
Degree in violation of Penal Law Section 155.40(1), as follows:
Said defendants, in the County of New York, from on or about April 8,2003 to on
or about March 30, 2004, stole propeliy, to wit, money, from David Mecartney, and the
Criminal Act 135

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and MENIES committed the
follows:
Said defendants, in the County of New York, from on or about April 8,2003 to on
or about March 30, 2004, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from David Mecartney.
66
Criminal Act 136

MARKOWITZ and MENIES committed the crime of Falsifying Business Records in
Criminal Act 137

MARKOWITZ, and MENIES committed the crime of Grand Larceny in the Third
on or about May 24,2005, stole property, to wit, money, from Laurence Thibault, and the
Criminal Act 138

MARKOWITZ, MORAITIS, MARTINUCCI and MENIES committed the crime of
67
property of a value in excess of two hundred fifty dollars from Laurence Thibault.
Second Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, further

accuse defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,
MARKOWITZ, SHAPIRO, ORTHOS, FERRARO, RASPA, TIERNEY, TRIPODI
COSTABILE, RATHGEBER, MENIES and MUCOVIC, of the crime of securities
fraud in violation of General Business Law Section 352-c(5), committed as follows:
on or about April 1, 2005, intentionally engaged in a scheme constituting a systematic
inducing and promoting the issuance, distribution, exchange, sale, negotiation and·
purchase of securities, to wit, securities issued by Antigenics, Inc. ("AGEN").
Third Count

MARKOWITZ, SHAPIRO, FERRARO, TRIPODI, COSTABILE, RATHGEBER,
MENIES and MUCOVIC of the crime of securities fraud in violation of General
Business Law Section 352-c(5), committed as follows:
on or about August 18, 2004, intentionally engaged in a scheme constituting a systematic
68
promIses, and so obtained property from at least one such person while engaged in
purchase of securities, to wit, securities issued by Cypress Biosciences, Inc. ("CYPB").
Fourth Count

MARKOWITZ, SHAPIRO, FERRARO and MUCOVIC of the crime of securities fraud
in violation of General Business Law Section 352-c(5), committed as follows:
2004 to on or about March 16, 2005, intentionally engaged in a scheme constituting a
negotiation and purchase of securities, to wit, securities issued by Discovery
Laboratories, Inc. ("DSCO").
Fifth Count

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO, COSTABILE and RATHGEBER of
the crime of securities fraud in violation of General Business Law Section 352-c(5),
committed as follows:
2004 to on or about April 25, 2005, intentionally engaged in a scheme constituting a
69
negotiation and purchase of securities, to wit, securities issued by Focus Enhancements,
Inc. ("FCSE").
Sixth Count

MARKOWITZ, SHAPIRO, ORTHOS, FERRARO and COSTABILE of the crime of
securities fraud in violation of General Business Law Section 352-c(5), committed as
follows:
on or about June 23, 2005, intentionally engaged in a scheme constituting a systematic
purchase of securities, to wit, securities issued by Tapestry Pharmaceuticals, Inc.
("TPPH").
Seventh Count

MARKOWITZ, MORAITIS, ORTHOS, FERRARO, RASPA, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI and MENIES of the crime of securities fraud in violation of
General Business Law Section 352-c(5), committed as follows:
on or about September 8, 2005, intentionally engaged in a scheme constituting a
70
Corp. ("APGO").
Eighth Count
AND THE GRAND JURY AFORESAID, BY TI-HS INDICTMENT, further

SCARCELLA, TRIPODI and RATHGEBER of the crime of securities fraud in
violation of General Business Law Section 352-c(5), committed as follows:
Corp. (Warrants) ("APGOW").
71
Ninth Count

MARKOWITZ, MORAITIS, ORTHOS, RASP A, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI, COSTABILE, RATHGEBER and MENIES of the crime of
follows:
systematic ongoing course of cond,?-ct with intent to defraud at least ten persons and to
("CEAC").
Tenth Count

SCARCELLA, TRIPODI; COSTABILE and RATHGEBER of the crime of securities
Said defendants, in the County of New York, from on or about December 30,
2004 to on or about December 5, 2005, intentionally engaged in a scheme constituting a
72
(Warrants) ("CEACW").
Eleventh Count

MARKOWITZ, MORAITIS, ORTHOS, FERRARO, RASPA, TIERNEY and TRIPODI
of the crime of securities fraud in violation of General Business Law Section 352-c(5),
or about October 4, 2005, intentionally engaged in a scheme constituting a systematic
purchase of securities, to \vit, securities issued by Manhattan Pharmaceuticals, Inc.
("MHTT," also known as "MBA").
Twelfth Count

MARKOWITZ, MARTINUCCI, ORTHOS and RASPA of the crime of securities fraud
73
negotiation and purchase of securities, to wit, securities issued by Ardent Acquisition
Corp. (Warrants) ("AACQW").
Thirteenth Count

MARKOWITZ, MARTINUCCI, RASP A, TIERNEY, MICCIOLA and SCARCELLA,
of the crime of securities fraud in violation of General Business Law Section 352-c(5),
negotiation and purchase of securities, to wit, securities issued by BioDelivery Sciences
International, Inc. ("BDSI").
Fourteenth Count

MARKOWITZ, MARTINUCCI, ORTHOS, RASPA and TIERNEY of the crime of
follows:
74
negotiation and purchase of securities, to wit, securities issued by CytRx Corp.
("CYTR").
Fifteenth Count

accuse defendants JOSEPH STEVENS & COMPANY, INC" SORBARA,
MARKOWITZ, MARTlNUCCI, ORTHOS, FERRARO, RASPA, TIERNEY,
MICCIOLA, SCARCELLA, TRIPODI, COSTABILE and RATHGEBER of the crime of
follows:
negotiation and purchase of securities, to wit, securities issued by Datatec Systems, Inc.
("DATC").
Sixteenth Count

MARKOWITZ, MARTINUCCI, RASPA, TIERNEY, MICCIOLA, SCARCELLA,
TRIPODI and RATHGEBER of the crime of securities fraud in violation of General
Business Law Section 352-c(5), committed as follows:
75
Said defendants, in the County of New York, from on or about October 20, 2003
representations arid promises, and so obtained propeliy from at least one such person
negotiation and purchase of securities, to wit, securities issued by Sonic Foundry, Inc.
("SOFO").
Seventeenth Count

MARKOWITZ, MARTINUCCI, FERRARO, RASPA, TIERNEY, MICCIOLA,
SCARCELLA, TRIPODI, COSTABILE, RATHGEBER and MENIES of the crime of
follows:
negotiation and purchase of securities, to wit, securities issued by Star Scientific, Inc.
("STSI").
76
Eighteenth Count

MARKOWITZ, SHAPIRO, COSTABILE and MUCOVIC of the crime of Criminal
Possession of Stolen Property in the Second Degree in violation of Penal Law 165.52,
Said defendants, in the County of New York, on or about August 17, 2004
Nineteenth Count

MARKOWITZ, SHAPIRO and MUCOVIC of the crime of Criminal Possession of
Stolen Property in the Third Degree in violation of Penal Law 165.50, committed as
follows:
manipulation of TIl Network Technologies, Inc. ("TIll"), with the intent to benefit
77
Twentieth Count

MARKOWITZ, SHAPIRO and ORTHOS of the crime of Criminal Possession of Stolen
Property in the Third Degree in violation of Penal Law 165.50, committed as follows:
Twent)r-first Count

MARKOWITZ and SHAPIRO of the crime of Criminal Possession of Stolen Property
in the Third Degree in violation of Penal Law 165.50, committed as follows:
manipulation of Tapestry Pham1aceuticals, Inc. ("TPPH"), with the intent to benefit
78
Twenty-second Count

MARKOWITZ, SHAPIRO, FERRARO and MUCOVIC of the crime of Criminal
Possession of Stolen Property in the Third Degree in violation of Penal Law 165.50,
manipulation of Discovery Laboratories, Inc. ("DSCO"), with the intent to benefit
owner thereof, and the value of the propeliy exceeded three thousand dollars.
Twenty-third Count

MARKOWITZ, SHAPIRO, ORTHOS and FERRARO of the cnme of Criminal
165.45(1), committed as follows:
manipulation of Focus Enhancements, Inc. ("FCSE"), with the intent to benefit
owner thereof, and the value of the property exceeded one thousand dollars.
79
Twenty-fourth Count

MARKOWITZ, MORAITIS, FERRARO and MUCOVIC of the crime of Criminal
Said defendants, 111 the County of New York, on or about June 29, 2004,
manipulation of Manhattan Pharmaceuticals, Inc. ("MHTT," also known as "MHA"),
with the intent to benefit themselves or a person other than an owner thereof and to
impede the recovery by an owner thereof, and the value of the property exceeded three
thousand dollars.
Twenty-fifth Count

MARKOWITZ, MORAITIS, RASPA, TIERNEY, MICCIOLA and SCARCELLA of the
crime of Criminal Possession of Stolen Property in the Third Degree in violation of
Penal Law 165.50, committed as follows:
80
Twenty-sixth Count

accuse defendants JOSEPH STEVENS & COMPANY, TI\JC., SORBARA,
MARKOWITZ, MORAITIS, RASPA, TIERNEY and TRIPODI of the crime of
Law 165.50, committed as follows:
Twenty-seventh Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, further,

MARKOWITZ, MORAITIS, RASPA, TIERNEY, MICCIOLA, SCARCELLA and
TRIPODI of the crime of Criminal Possession of Stolen Property in the Fourth
Degree in violation of Penal Law 165.45(1), committed as follows:
manipulation of CEA Acquisitions Corp. (Wan-ants) ("CEACW"), with the intent to
81
Twenty-eighth Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, fmiher

MARKOWITZ, MORAITIS and MENIES of the crime of Criminal Possession of
follows:
Twenty-ninth Count

MARKOWITZ, MORAITIS, ORTHOS and MENIES of the cnme of Criminal
Said defendants, 1ll the County of New York, on or about April 25, 2005,
82
Thirtieth Count

MARKOWITZ, MORAITIS, RASPA, TIERNEY and TRIPODI of the crime of
knowingly possessed stolen propelty, to wit: money generated as a result of the
Thirty-first Count

MARKOWITZ, MORAITIS, RASPA and TIERNEY of the crime of Criminal
83
Thirty-second Count

MARKOWITZ, MORAITIS and MENIES of the crime of Criminal Possession of
follows:
Said defendants, in the County of New York, on or about May 27, 2005,
manipulation of Arpeggio Acquisitions Corp. ("APGO"), with the intent to benefit
Thirty-third Count

MARKOWITZ, MORAITIS, RASPA, TIERNEY and RATHGEBER of the crime of
Law 165.45(1), committed as follows:
84
Thirty-fourth Count

MARKOWITZ, MARTINUCCI and ORTHOS of the crime of Criminal Possession of
follows:
manipulation of Ardent Acquisition Corp. ("AACQW"), with the intent to benefit
Thirty-fifth Count

accuse defendants JOSEPH STEVENS & COMPANY, n\Tc., SORBARA,
MARKOWITZ, MARTINUCCI and ORTHOS of the crime of Criminal Possession of
follows:
knowingly possessed stolen propeliy, to wit: money generated as a result of the
manipulation of Aldabra Acquisition Corp. ("ALBAW"), with the intent to benefit
85
Thirty-sixth Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, fUliher

MARKOWITZ, MARTINUCCI, RASPA, TIERNEY, MICCIOLA and SCARCELLA of
the crime of Criminal Possession of Stolen Property in the Third Degree in violation
of Penal Law 165.50, committed as follows:
manipulation of BioDelivery Sciences International, Inc. ("BDSI"), with the intent to
Thirty-seventh Count

MARKOWITZ, MARTINUCCI, RASPA and TIERNEY of the crime of Criminal
86
Thirty-eighth Count

MARKOWITZ, MARTINUCCI, RASP A and TIERNEY of the crime of Criminal
Thirty-ninth Count

Said defendants, III the County of New York, on or about April 26, 2005,
87
Fortieth Count

Forty-first Count

MARKOWITZ, MARTINUCCI, RASPA and TIERl\TEY of the crime of Criminal
manipulation of CytRx Corp. ("CYTR") with the intent to benefit themselves or a person
88
Forty-second Count

MARKOWITZ, MARTH,TUCCI, MICCIOLA and SCARCELLA of the crime of
Forty-third Count

MARKOWITZ and ORTHOS of the crime of Grand Larceny in the Third Degree in
violation of Penal Law Section 155.35, committed as follows:
on or about November 14, 2005, stole property, to wit, money, from Seymour Kessler,
89
Forty-fourth Count

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and ORTHOS of the crime of
follows:
to deceive and defraud, .made material false representations and statements, while
property of a value in excess of two hundred fifty dollars from Seymour Kessler.
Forty-fifth Count

MARKOWITZ and ORTHOS of the crime of Grand Larceny in the Second Degree in
violation of Penal Law Section 155.40(1), committed as follows:
Said defendants, in the County of New York, fTom on or about January 22, 2003
to on or about May 24, 2005, stole property, to wit, money, from Jean Melchior, and the
90
Forty-sixth Count

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and ORTHOS of the crime of
follows:
to on or about May 24, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Jean Melchior.
Forty-seventh Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, fuliher

MARKOWITZ and ORTHOS of the crime of Grand Larceny in the Third Degree in
to on or about August 30, 2005, stole property, to wit, money, from Barry Saxe, and the
value ofthe property exceeded three thousand dollars.
91
Forty-eighth Count

MARKOWITZ, MORAITIS, MARTINUCCI and ORTHOS of the crime of securities
to on or about August 30, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Barry Saxe.
Forty-ninth Count

MARKOWITZ and FERRARO of the crime of Grand Larceny in the Third Degree in
to on or about April 8, 2005, stole property, to wit, money, from Edward Ball, and the
92
Fiftieth Count

MARKOWITZ, SHAPIRO, MORAITIS and FERRARO of the crime of securities fraud
to on or about April 8, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Edward Ball.
Fifty-first Count

on or about June 14, 2004, stole property, to wit, money, from Jeffrey Daniels, and the
93
Fifty-second Count

MARKOWITZ, MORAITIS and FERRARO of the crime of securities fraud in
on or about June 14, 2004, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Jeffrey Daniels.
Fifty-third Count
AND THE GRAND mRY AFORESAID, BY THIS INDICTMENT, further

or about AprilS, 2005, stole property, to wit, money, from Roger Erickson, and the value
94
Fifty-eighth Count

MARKOWITZ, MORAITIS, MARTINUCCI, RASPA and TIERNEY of the crime of
follows:
to on or about March 29, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Mark Berkowitz.
Fifty-ninth Count

MARKOWITZ and RASPA of the crime of Falsifying Business Records in the First
Degree in violation of Penal La,,, Section 175.10, committed as follows:
97
Fifty-sixth Count

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI, RASPA and TIERNEY of the
crime of securities fraud in violation of General Business Law Section 352-c(6),
to on or about November 30, 2005 intentionally engaged in fraud, deception,
from Robert Arnold.
Fifty-seventh Count

MARKOWITZ, RASPA and TIERNEY of the crime of Grand Larceny in the Second
Degree in violation of Penal Law Section 155.40(1), committed as follows:
to on or about March 29, 2005, stole property, to wit, money, from Mark Berkowitz, and
96
Fifty-fourth Count
AND THE GRAND JURY AFORESAID, BY TI--IIS INDICTMENT, further

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and FERRARO of the crime of
follows:
or about AprilS, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Roger Erickson.
Fifty-fifth Count

accuse defendants JOSEPH STEVENS & COMPANY, ThTC., SORBARA,
MARKOWITZ, RASPA and TIERNEY of the crime of Grand Larceny in the Third
Degree in violation of Penal Law Section 155.35, committed as follows:
to on or about November 30, 2005, stole property, to wit, money, from Robert Arnold,
95
Sixtieth Count

on or about September 30, 2005, stole property, to wit, money, from Berkowitz and
Garfinkel D.D.S., P.A. Employees Pension Plan, and the value of the property exceeded
three thousand dollars.
Sixty-first Count

on or about September 30, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Berkowitz and Garfinkel
. D.D.S., P.A. Employees Pension Plan.
98
Sixty-second Count
. AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, further

accuse defendants JOSEPH STEVENS & COMPANY, D\JC., SORBARA,
Said defendants, in the County of New York, on or about October 8, 2004, with
Sixty-third Count

on or about February 7, 2005, stole property, to wit, money, from Vincent Keating, and
Sixty-fourth Count

MARKOWITZ, MARTINUCCI, RASPA and TIERNEY of the crime of securities
on or about February 7, 2005, intentionally engaged in fraud, deception, concealment,
99
property of a value in excess of two hundred fifty dollars from Vincent Keating.
Sixty-fifth Count

Said defendants, in the County of New York, on or about February 7, 2005, with
Sixty-sixth Count

MARKOWITZ, RASP A and TIERNEY of the crime of Grand Larceny in the Third
on or about May 24, 2005, stole property, to wit, money, from Lester Krasno, and the
100
Sixty-seventh Count

and purchase within and from New York of securities, , and thereby wrongfully obtained
property of a value in excess of two hundred fifty dollars from Lester Krasno.
Sixty-eighth Count

MARKOWITZ, RASP A and TIERNEY of the crime of Grand Larceny in the Second
on or about November 17, 2004, stole property, to wit, money, from Dale Wilson, and the
101
Sixty-ninth Count

MARKOWITZ, MORAITIS, MARTINUCCI, RASPA, and TIERNEY committed the
follows:
property of a value in excess of two hundred fifty dollars from Dale Wilson.
Seventieth Count

MARKOWITZ, MICCIOLA and SCARCELLA of the crime of Grand Larceny in the
Second Degree in violation of Penal Law Section 155.40(1), committed as follows:
on or about December 1, 2005, stole property, to wit, money, from Eileen Williams, and
102
Seventy-first Count

MARKOWITZ, MORAITIS, MARTINUCCI, MICCIOLA and SCARCELLA of the
property of a value in excess of two hundred fifty dollars from Eileen Williams.
Seventy-second Count

MARKOWITZ and SCARCELLA of the crime of Falsifying Business Records in the
First Degree in violation of Penal Law Section 175.10, committed as follows:
Said defendants, in the County of New York, on or about August 31,2004, \Yith
commission thereof, made and caused to be made a false entry in the business records of -
103
Seventy-third Count

Second Degree in violation of Penal Law Section 155.40(1), committed as follows:
on or about November 22, 2005, stole property, t6 wit, money, from Infectious Disease
Consultants, P.A. Profit Sharing Plan, and the value of the property exceeded fifty
thousand dollars.
Seventy-fourth Count

property of a value in excess of two hundred fifty dollars from Infectious Disease
Consultants, P.A. Profit Sharing Plan.
104
Seventy-fifth Count

Third Degree in violation of Penal Law Section 155.35, committed as follows:
2003 to on or about March 8, 2005, stole property, to wit, money, from David Krasner,
Seventy-sixth Count

2003 to on or about March 8, 2005, intentionally engaged in fraud, deception,
from David Krasner.
105
Seventy-seventh Count
AND THE GRAl\ID JURY AFORESAID, BY THIS INDICTMENT, further

Third Degree in violation of Penal Law Section 155.35, committed as follows:
Said defendants, in the County of New York, from on or about August 25, 2003 to
on or about May 19,2005, stole property, to wit, money, from James Ley, and the value
Seventy-eighth Count

Said defendants, in the County of New York, form on or about August 25,2003 to
property of a value in excess of two hundred fifty dollars from James Ley.
106
Seventy-ninth Count

MARKOWITZ, and TRIPODI of the crime of Grand Larceny in the Third Degree in
on or about December 2, 2005, stole property, to wit, money, from Charles Morse, and
the value of the prope11y exceeded three thousand dollars.
Eightieth Count

MARKOWITZ, MORAITIS, MARTINUCCI and TRIPODI of the crime of securities
property of a value in excess of two hundred fifty dollars from Charles Morse.
107
Eighty-first Count

MARKOWITZ, and TRIPODI of the crime of Grand Larceny in the Third Degree in
or about October 5, 2005, stole property, to wit, money, from Edward Winstead, and the
Eighty-second Count

MARKOWITZ, SHAPIRO, MORAITIS, MARTINUCCI and TRIPODI of the crime of
follows:
or about October 5, 2005, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Edward Winstead.
108
Eighty-third Count

MARKOWITZ, and COSTABILE of the crime of Grand Larceny in the Third Degree
in violation of Penal Law Section 155.35, committed as follows:
on or about August 12, 2004, stole property, to wit, money, from Abraham Khajeie, and
Eighty-fourth Count
AND THE GRAND JURY AFORESAID, BY THIS INDICTMENT, fUliher

MARKOWITZ, MORAITIS, MARTINUCCI and COSTABILE of the crime of
follows:
on or about August 12, 2004, intentionally engaged in fraud, deception, concealment,
property of a value in excess of two hundred fifty dollars from Abraham Khajeie.
109
Eighty-fifth Count

MARKOWITZ and RATHGEBER of the crime of Grand Larceny in the Second
Said defendants, in the County of New York, from on or about March 2,6, 2003 to
on or about November 2, 2005, stole property, to wit, money, from Lester Boelter, and
Eighty-sixth Count

MARKOWITZ, MORAITIS, MARTINUCCI and RATHGEBER of the crime of
follows:
property of a value in excess of two hundred fifty dollars from Lester Boelter.
110
Eighty-seventh Count

MARKOWITZ and RATHGEBER of the crime of Falsifying Business Records in the
Said defendants, in the County of New York, on or about December 9, 2004, with
an enterprise, to wit, a Ne\v Account Application for Joseph Stevens & Company, Inc.
Eighty-eighth Count

MARKOWITZ and RATHGEBER of the crime of Falsifying Business Records in the
111
Eighty-ninth Count

MARKOWITZ, and RATHGEBER of the crime of Grand Larceny in the Third
on or about November 15, 2005, stole property, to wit, money, from Jeffrey Davis, and
Ninetieth Count

MARKOWITZ, MORAITIS, MARTINUCCI and RATHGEBER of the crime of
follows:
on or about November 15, 2005 intentionally engaged in fraud, deception, concealment,
property ofa value in excess of two hundred fifty dollars from Jeffrey Davis.
112
Ninety-first Count

MARKOWITZ and RATHGEBER of the crime of Grand Larceny in the Second
on or about November 5, 2004, stole property, to wit, money, from William Herbes, and
Ninety-second Count

MARKOWITZ, MARTINUCCI and RATHGEBER of the crime of securities fraud in
property of a value in excess of two hundred fifty dollars from William Herbes.
113
Ninety-third Count

MARKOWITZ, and MENIES of the crime of Grand Larceny in the Third Degree in
on or about May 24, 2005, stole property, to wit, money, from Laurence Thibault, and the
Ninety-fourth Count

MARKOWITZ, MORAITIS, MARTINUCCI and MENIES of the crime of securities
property of a value in excess of two hundred fifty dollars from Laurence Thibault.
ROBERT M. MORGENTHAU
District Attorney
114

Joseph Stevens Indictment

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Joseph Stevens Indictment

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SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK

THE PEOPLE OF THE STATE OF NEW YORK

JOSEPH STEVENS & COMPANY, INC.

THE GRAND JURY OF THE COUNTY 0 F NEW YORK, by this

indictment, accuse the defendants of the crime of ENTERPRISE CORRUPTION, in

violation of Penal Law Section 460.20(1)(a), committed as follows:

in or about December 2005, having knowledge of the existence of a criminal enterprise

enterprise, intentionally conducted and participated in the affairs of an enterprise by

participating in a pattem of criminal activity.

in criminal conduct, associated in an ascertainable structure distinct from a pattern of

scope of individual criminal incidents.

members of the criminal enterprise was to engage in criminal conduct, including

and manipulate the prices of certain securities (hereinafter "Scheme Stocks").

Among other methods, defendants induced customers to buy Scheme Stocks by

accounts in order to facilitate these manipulative practices. Defendants induced their

customers to refuse to buy and sell the Scheme Stocks.

Structure and Continuity

the criminal enterprise shared.

manipulation of the price of the stock.

within the structure of the criminal enterprise:

defendant JOSEPH STEVENS & COMPANY, INC. was a

brokerage firm that provided a location, structure, clearing relationship

was co-managed by the principals of the criminal enterprise;

operations staff of the criminal enterprise, including all of the defendants,

defendants SHAPIRO, MORAITIS and MARTINUCCI were

traders in charge of informing brokers of what Scheme Stock would be

manipulated on which day, delayed executing customer orders,

manipulated the price of the Scheme Stocks upward or downward, and

executed customer orders brought in by the various members of the

criminal enterprise to generate unlawful trading profits that were shared by

members of the criminal enterprise; and,

defendants ORTHOS, FERRARO, RASPA, TIERNEY,

MICCIOLA, SCARCELLA, TRIPODI, COSTABILE, RATHGEBER,

MENIES and MUCOVIC were brokers who coordinated with traders to

advanced commitments of the number of shares they would sell to or buy

from their customers, without the consent and knowledge of their

and executed customer orders at a price unfavorable to their customers to

PATTERN OF CRIMINAL ACTIVITY

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & CO. INC., SORBARA, MARKOWITZ,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA, MARKOWITZ,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS &. COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,

Defendants JOSEPH STEVENS & COMPANY, INC., SORBARA,