Securities and Exchange Commission v. Anand Jayapalan et al, No. 2:2017cv07186 - Document 31 (C.D. Cal. 2018)
Court Description: FINAL JUDGMENT AS TO DEFENDANT RAJNI NAIR by Judge Percy Anderson. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $1,425.05, representing profits gained as a result of the conduct alleged in the Com plaint, together with prejudgment interest thereon in the amount of $14.25, and a civil penalty in the amount of $1,425.05 pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall satisfy this obligation by paying $2,864.35 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. See document for details. (lom) Modified on 2/27/2018 (lom).
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Securities and Exchange Commission v. Anand Jayapalan et al 1 2 Doc. 31 DOUGLAS M. MILLER (Cal. Bar No. 240398) Email: millerdou@sec.gov TAMAR M. BRAZ (Cal. Bar No. 264080) Email: brazt@sec.gov 3 4 5 6 7 8 Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director Alka N. Patel, Associate Regional Director Amy J. Longo, Regional Trial Counsel 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 12 13 14 SECURITIES AND EXCHANGE COMMISSION, 15 Plaintiff, 16 17 Case No. CV 17-7186 PA (MRWx) FINAL JUDGMENT AS TO DEFENDANT RAJNI NAIR vs. 19 ANAND JAYAPALAN, ANANDA KUMAR ANANDA, also known as “Kumar Ananda,” RAJNI NAIR, and VIJAYA ANANDA, 20 Defendants. 18 21 22 The Securities and Exchange Commission having filed a Complaint and 23 Defendant Rajni Nair having entered a general appearance; consented to the Court’s 24 jurisdiction over Defendant and the subject matter of this action; consented to entry 25 of this Final Judgment without admitting or denying the allegations of the Complaint 26 (except as to jurisdiction and except as otherwise provided herein in paragraph IV); 27 waived findings of fact and conclusions of law; and waived any right to appeal from 28 this Final Judgment: 1 Dockets.Justia.com I. 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 3 permanently restrained and enjoined from violating, directly or indirectly, Section 4 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 5 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 6 any means or instrumentality of interstate commerce, or of the mails, or of any 7 facility of any national securities exchange, in connection with the purchase or sale of 8 any security: 9 (a) to employ any device, scheme, or artifice to defraud; 10 (b) to make any untrue statement of a material fact or to omit to state a 11 material fact necessary in order to make the statements made, in the light 12 of the circumstances under which they were made, not misleading; or 13 14 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 15 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 17 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 18 binds the following who receive actual notice of this Final Judgment by personal 19 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Defendant or 21 with anyone described in (a). 22 23 II. 24 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 25 Defendant is permanently restrained and enjoined from violating Section 14(e) of the 26 Exchange Act [15 U.S.C. § 78n(e)] and Rule 14e-3 [17 C.F.R. § 240.14e-3] 27 promulgated thereunder, in connection with any tender offer or request or invitation 28 2 1 for tenders, from engaging in any fraudulent, deceptive, or manipulative act or 2 practice, by: 3 (a) purchasing or selling or causing to be purchased or sold the securities 4 sought or to be sought in such tender offer, securities convertible into or 5 exchangeable for any such securities or any option or right to obtain or 6 dispose of any of the foregoing securities while in possession of material 7 information relating to such tender offer that Defendant knows or has 8 reason to know is nonpublic and knows or has reason to know has been 9 acquired directly or indirectly from the offering person; the issuer of the 10 securities sought or to be sought by such tender offer; or any officer, 11 director, partner, employee or other person acting on behalf of the 12 offering person or such issuer, unless within a reasonable time prior to 13 any such purchase or sale such information and its source are publicly 14 disclosed by press release or otherwise; or 15 (b) communicating material, nonpublic information relating to a tender 16 offer, which Defendant knows or has reason to know is nonpublic and 17 knows or has reason to know has been acquired directly or indirectly 18 from the offering person; the issuer of the securities sought or to be 19 sought by such tender offer; or any officer, director, partner, employee, 20 advisor, or other person acting on behalf of the offering person of such 21 issuer, to any person under circumstances in which it is reasonably 22 foreseeable that such communication is likely to result in the purchase or 23 sale of securities in the manner described in subparagraph (a) above, 24 except that this paragraph shall not apply to a communication made in 25 good faith 26 27 (i) to the officers, directors, partners or employees of the offering person, to its advisors or to other persons, involved 28 3 1 in the planning, financing, preparation or execution of such 2 tender offer; 3 (ii) to the issuer whose securities are sought or to be sought by 4 such tender offer, to its officers, directors, partners, 5 employees or advisors or to other persons involved in the 6 planning, financing, preparation or execution of the 7 activities of the issuer with respect to such tender offer; or 8 9 (iii) to any person pursuant to a requirement of any statute or rule or regulation promulgated thereunder. 10 11 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 12 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 13 binds the following who receive actual notice of this Final Judgment by personal 14 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 15 attorneys; and (b) other persons in active concert or participation with Defendant or 16 with anyone described in (a). 17 18 19 III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 20 is liable for disgorgement of $1,425.05, representing profits gained as a result of the 21 conduct alleged in the Complaint, together with prejudgment interest thereon in the 22 amount of $14.25, and a civil penalty in the amount of $1,425.05 pursuant to Section 23 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall satisfy this 24 obligation by paying $2,864.35 to the Securities and Exchange Commission within 25 14 days after entry of this Final Judgment. 26 Defendant may transmit payment electronically to the Commission, which will 27 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 28 be made directly from a bank account via Pay.gov through the SEC website at 4 1 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 2 check, bank cashier’s check, or United States postal money order payable to the 3 Securities and Exchange Commission, which shall be delivered or mailed to 4 Enterprise Services Center 5 Accounts Receivable Branch 6 6500 South MacArthur Boulevard 7 Oklahoma City, OK 73169 8 and shall be accompanied by a letter identifying the case title, civil action number, 9 and name of this Court; Rajni Nair as a defendant in this action; and specifying that 10 11 payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of evidence of payment 12 and case identifying information to the Commission’s counsel in this action. By 13 making this payment, Defendant relinquishes all legal and equitable right, title, and 14 interest in such funds and no part of the funds shall be returned to Defendant. The 15 Commission shall send the funds paid pursuant to this Final Judgment to the United 16 States Treasury. 17 The Commission may enforce the Court’s judgment for disgorgement and 18 prejudgment interest by moving for civil contempt (and/or through other collection 19 procedures authorized by law) at any time after 14 days following entry of this Final 20 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 21 pursuant to 28 U.S.C. § 1961. 22 23 24 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 25 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 26 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 27 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 28 amounts due by Defendant under this Final Judgment or any other judgment, order, 5 1 consent order, decree or settlement agreement entered in connection with this 2 proceeding, is a debt for the violation by Defendant of the federal securities laws or 3 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 4 the Bankruptcy Code, 11 U.S.C. §523(a)(19). 5 6 7 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 8 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 9 Final Judgment. 10 11 12 Dated: , ____________________________________ ____________________________________ _ _ _ _ _ _ _ _ 13 14 UNITED STATES DISTRICT JUDGE STATES A 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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