Three former GigaTrust executives were charged in October 2021, but their later outcomes differ: founder and former CEO Robert Bernardi pleaded guilty and was sentenced to five years in prison; former CFO Nihat Cardak pleaded guilty, but the available DOJ release only states a scheduled sentencing date; and the sources cited here do not establish the later outcome of former vice president Sunil Chandra’s case. The original accusations should not be confused with what either defendant admitted.
What prosecutors alleged in the 2021 charges
On October 20, 2021, the U.S. Attorney’s Office for the Southern District of New York announced charges against Robert Bernardi, GigaTrust’s founder and former CEO; Nihat Cardak, its former CFO; and Sunil Chandra, its former vice president of business development. Prosecutors alleged a scheme involving investors and lenders that ran from about 2016 through 2019. The indictment’s claims were allegations, and the Justice Department said the defendants were presumed innocent unless and until proven guilty. DOJ charging announcement.
The alleged financial documents and impersonation
According to prosecutors, the defendants used fabricated bank statements to inflate reported cash deposits, false audit materials to overstate company performance, and a forged letter purportedly from the company’s New York counsel. The indictment also alleged that people impersonated a purported customer and auditor on lender diligence calls. These descriptions concern the government’s allegations at the charging stage; they are not findings that all three defendants admitted.
The alleged loans and the $50 million figure
The DOJ described a $25 million bank loan that later defaulted and a separate $25 million loan allegedly obtained through misrepresentations and impersonation. Its releases also characterized the broader amount as upwards of $50 million in loans and investments secured or involved in the alleged scheme. That figure is not established here as a precise loss amount.
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How the three defendants’ cases differ
| Defendant | Confirmed procedural history in the cited DOJ releases | What is not established here |
|---|---|---|
| Robert Bernardi | Pleaded guilty on August 17, 2022; sentenced on January 24, 2023. | Not applicable to the outcome described below. |
| Nihat Cardak | Pleaded guilty on January 12, 2023. The DOJ release said sentencing was scheduled for May 16, 2023. | The result of that hearing or any later disposition. |
| Sunil Chandra | The DOJ releases described indictment charges against him as accusations and noted the presumption of innocence. | A later plea, trial, dismissal, or other disposition. |
Bernardi pleaded guilty and was sentenced
The DOJ reported that Bernardi pleaded guilty to conspiracy to commit securities fraud, bank fraud, and wire fraud. In describing his plea, prosecutors said he admitted using false representations to obtain upwards of $50 million in loans and investments. That admission is distinct from the indictment’s allegations about particular conduct and transactions.
On January 24, 2023, Bernardi received a five-year prison sentence and three years of supervised release. The court also ordered him to forfeit $3,442,264 and to pay restitution; the DOJ release cited here does not state the restitution amount. See the DOJ’s plea announcement and sentencing announcement.
Cardak pleaded guilty, but the cited release gives only a scheduled sentencing date
The DOJ reported that Cardak pleaded guilty on January 12, 2023, to conspiracy to commit securities fraud. Its release stated that sentencing was scheduled for May 16, 2023. The release does not establish what happened at or after that hearing, so it cannot support a claim about the sentence or his current status. DOJ plea announcement.
Chandra’s later case outcome is not established here
The DOJ’s January 2023 releases continued to describe the charges against Chandra as accusations and stated that he was presumed innocent. The sources cited here do not establish whether he later pleaded guilty, went to trial, had the charges dismissed, or reached another outcome. That gap is not evidence of guilt or proof that the case remains pending today.
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What happened to GigaTrust
GigaTrust was the trade name of GigaMedia Access Corporation, a Virginia-based email and content-security company. The DOJ said the company filed for Chapter 7 bankruptcy protection in Delaware on or about November 27, 2019. SecurityWeek described it as defunct and said its products covered endpoint email security and document in-use protection for enterprise and government organizations. DOJ company and bankruptcy details; SecurityWeek’s company description.
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