United States v. Berman

CourtDistrict Court, District of Columbia
DecidedMay 16, 2025
DocketCriminal No. 2020-0278
StatusPublished

This text of United States v. Berman (United States v. Berman) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Berman, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES,

v. No. 20-cr-00278 (TNM) KEITH BERMAN,

Defendant.

MEMORANDUM ORDER*

The Court must determine the amount of restitution that Defendant Keith Berman owes

the victims of his fraud. Berman challenges the Government’s proffered sum on two grounds.

First, he insists that one of the tendered award recipients is not a “victim” under the Mandatory

Victims Restitution Act. On that front, the Court agrees. This would-be recipient was not

directly harmed by the conduct underlying Berman’s offense of conviction. Second, Berman

argues that the Government failed to prove that various stock losses happened during the fraud

period. There, the Court disagrees. The Victim Impact Statements establish that the challenged

stock purchases were made relying on Berman’s misrepresentations, indicating they were

purchased during the fraud period. Finally, the Court determines that Berman’s precarious

financial condition renders him unable to pay the full amount of the restitution order

immediately. It thus instructs Berman to pay a reduced monthly sum.

I.

In late 2023, Keith Berman pled guilty to three felonies: securities fraud, wire fraud, and

obstruction of Securities and Exchange Commission (“SEC”) proceedings. Superseding

Indictment, ECF No. 19, at 20–22; Def.’s Stmt. Supp. Guilty Plea, ECF No. 170 (“Def.’s

* An unredacted version of this Order was filed under seal on April 30, 2025.

1 Stmt.”). The charges stemmed from Berman’s fraudulent conduct as CEO of his publicly traded

company, Decision Diagnostics Corp. Superseding Indictment ¶ 3; Def.’s Stmt. at 3. In early

2020, Decision Diagnostics and its CEO were facing financial straits. Superseding Indictment ¶

9; Def.’s Stmt. at 3. The company’s blood-glucose monitoring and testing devices were not

bringing in the profits that Berman needed. Superseding Indictment ¶ 9. But the onset of the

COVID-19 pandemic brought about new business opportunities—and potential salvation.

Superseding Indictment ¶ 15; Def.’s Stmt. at 3. Berman believed he could restructure existing

technology to develop a groundbreaking device able to detect the rampant virus in the

bloodstream, known as “impedance” technology. Superseding Indictment ¶ 11 (“BERMAN

wrote an email in which he stated, ‘We have a lot at stake here . . . . [T]his coronavirus through

impedance is the story that will allow me to raise millions.”); Def.’s Stmt. at 3. He just needed a

little help—and he was willing to break a few rules to get it.

In the first frightening months of the pandemic, Berman issued a series of press releases

that greatly exaggerated the company’s progress developing the detection device. Superseding

Indictment ¶¶ 18–35; Def.’s Stmt. at 3. Though Berman’s technical advisors expressed serious

doubts as to the viability of using impedance technology to test for COVID-19, Berman did not

reveal this to the public. Superseding Indictment ¶¶ 17–19. Instead, he lauded Decision

Diagnostics’ “break-through” new technology, which he claimed the company had already

“perfected.” Id. ¶ 18. He announced that the technology “provided a positive or negative result

in 15 seconds based on a small finger prick blood sample,” and that since “government fast track

and waivers” had already begun, the test kits would be “commercial ready in summer 2020.” Id.

None of this was true. Decision Diagnostics had developed no test kit at all, much less

one that could accurately detect the virus in 15 seconds. Id. ¶ 19. Nor did Berman have any

2 evidence that the impedance method could actually work. Id. And the company had taken no

steps towards obtaining any government approvals for a product that remained entirely

speculative. Id.

Berman was undeterred. He continued to issue press releases representing that Decision

Diagnostics was “making significant progress toward bringing the product to market and would

be ready to manufacture and sell hundreds of millions of units in the first year.” Id. ¶ 20.

Behind the scenes, Berman’s vendor was repeatedly informing him that the proposed impedance

method was unlikely to be scientifically viable. Id. The vendor ultimately concluded and

communicated to Berman that the impedance method would never work. Id. ¶ 22. Still, Berman

did not disclose that devastating development to the market. Id. Instead, he continued to assure

investors that Food & Drug Administration (“FDA”) emergency approval was forthcoming. Id.

¶¶ 23–25, 28–31, 34 (“On or about April 23, 2020, BERMAN authorized a press release stating

that DECN had ‘completed discussions and have come to an understanding with the FDA on all

of the testing required . . . . We plan to engage a specialty reference laboratory to complete this

testing in the next 10 days. Testing should take about a week.”). In reality, the FDA approval

was stalled because the agency required clinical testing. Id. ¶ 31. But Decision Diagnostics

could not submit to testing because it lacked a prototype and the necessary insurance to conduct

reliable testing on human subjects. Id. ¶ 26.

In the meantime, the SEC had begun to investigate Decision Diagnostics and Berman.

Id. ¶ 36; Def.’s Stmt. at 3. In April 2020, the SEC suspended trading in the company’s stock due

to its concerns that Berman was materially misrepresenting the progress of its impedance

technology to investors. Superseding Indictment ¶ 49; Def.’s Stmt. at 3. Berman was

displeased. Pretending to be an independent shareholder of Decision Diagnostics, Berman

3 reached out to a contact (referred to as “Person 2” in the indictment) and directed the contact to

draft a letter to the SEC regarding the stock suspension. Superseding Indictment ¶ 53; Def.’s

Stmt. 3–4. The letter accused the SEC of unethical and inappropriate conduct against Decision

Diagnostics. Superseding Indictment ¶ 58; Def.’s Stmt. 4. Berman directed his contact to gather

signatures from the other shareholders before sending the letter to the agency. Superseding

Indictment ¶ 57; Def.’s Stmt. 4. Berman himself signed the shareholder letter using the alias

“Matthew Steinmann.” Superseding Indictment ¶ 58. But Berman would later tell law

enforcement agents that neither he nor his company had anything to do with the letter to the

SEC. Id. ¶ 64. Berman “engaged in this conduct to influence the SEC to end its investigation

into [Decision Diagnostics] and [himself.]” Def.’s Stmt. at 4.

All told, Berman’s misrepresentations caused his investors to lose at least hundreds of

thousands of dollars. Superseding Indictment ¶ 65; Restitution Notice, ECF No. 190, at 1

(Government calculating losses to shareholders over $1 million). Between early March 2020 and

the trading suspension, the company’s stock price had risen by over 1500%. Superseding

Indictment ¶ 37. After the fraud came to light, the stock became worthless. Id. ¶ 65.

In light of Berman’s guilty plea, the Court sentenced him to 84 months of incarceration

on the securities fraud and wire fraud counts, as well as 60 months on the obstruction charge, all

to run concurrently. Judgment, ECF No. 197, at 3. The incarceration terms were to be followed

by a term of 36 months of supervised release. Id. at 4. Before sentencing, the Government noted

its intent to seek restitution and calculated the amount it saw as due. Restitution Notice at 2.

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