Securities and Exchange Commission v. Energy and Environmental Investments, LLC et al, No. 8:2023cv00338 - Document 20 (C.D. Cal. 2023)
Court Description: FINAL JUDGMENT AS TO DEFENDANT ENERGY AND ENVIRONMENTAL INVESTMENTS, LLC 5 by Judge Fred W. Slaughter. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined. FURTHER ORDERED, ADJUDGED, AND DECREEDthat Def endant is liable for disgorgement of $3,414,836.23, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $977,948.76, and a civil penalty in the amo unt of $1,035,909 pursuant to Securities Act Section 20(d) and Exchange Act Section 21(d)(3). Defendant shall satisfy this obligation by paying $5,428,693.99 to the Securities and Exchange Commission within 30 days. (See document for further information). (jp)
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Securities and Exchange Commission v. Energy and Environmental Investments, LLC et al Doc. 20 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION 11 12 13 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 14 15 16 17 18 19 vs. ENERGY & ENVIRONMENTAL INVESTMENTS, LLC; ENERGY & ENVIRONMENT, INC.; AMIR A. SARDARI; and NARYSA SARDARI LUDDY, Case No. 8:23-cv-00338-FWS-JDE FINAL JUDGMENT AS TO DEFENDANT ENERGY & ENVIRONMENTAL INVESTMENTS, LLC [5] Defendants. 20 21 22 FINAL JUDGMENT AS TO DEFENDANT ENERGY & 23 ENVIRONMENTAL INVESTMENTS, LLC 24 The Securities and Exchange Commission having filed a Complaint and 25 Defendant Energy & Environmental Investments, LLC having entered a general 26 appearance; consented to the Court’s jurisdiction over Defendant and the subject 27 matter of this action; consented to entry of this Final Judgment without admitting 28 or denying the allegations of the Complaint (except as to jurisdiction); waived 1 Dockets.Justia.com 1 findings of fact and conclusions of law; and waived any right to appeal from this 2 Final Judgment: I. 3 4 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 5 is permanently restrained and enjoined from violating, directly or indirectly, 6 Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 7 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], 8 by using any means or instrumentality of interstate commerce, or of the mails, or 9 of any facility of any national securities exchange, in connection with the purchase 10 or sale of any security: 11 (a) to employ any device, scheme, or artifice to defraud; 12 (b) to make any untrue statement of a material fact or to omit to state a 13 material fact necessary in order to make the statements made, in the 14 light of the circumstances under which they were made, not 15 misleading; or 16 17 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 18 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 19 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 20 binds the following who receive actual notice of this Final Judgment by personal 21 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 22 attorneys; and (b) other persons in active concert or participation with Defendant 23 or with anyone described in (a). 24 25 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 26 that Defendant is permanently restrained and enjoined from violating Section 17(a) 27 of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the 28 offer or sale of any security by the use of any means or instruments of 2 1 transportation or communication in interstate commerce or by use of the mails, 2 directly or indirectly: 3 (a) to employ any device, scheme, or artifice to defraud; 4 (b) to obtain money or property by means of any untrue statement of a 5 material fact or any omission of a material fact necessary in order to 6 make the statements made, in light of the circumstances under which 7 they were made, not misleading; or 8 9 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 10 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 11 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 12 binds the following who receive actual notice of this Final Judgment by personal 13 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 14 attorneys; and (b) other persons in active concert or participation with Defendant 15 or with anyone described in (a). 16 17 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 18 that Defendant is liable for disgorgement of $3,414,836.23, representing net profits 19 gained as a result of the conduct alleged in the Complaint, together with 20 prejudgment interest thereon in the amount of $977,948.76, and a civil penalty in 21 the amount of $1,035,909 pursuant to Securities Act Section 20(d) and Exchange 22 Act Section 21(d)(3). Defendant shall satisfy this obligation by paying 23 $5,428,693.99 to the Securities and Exchange Commission within 30 days. 24 Defendant may transmit payment electronically to the Commission, which 25 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 26 may also be made directly from a bank account via Pay.gov through the SEC 27 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 28 certified check, bank cashier’s check, or United States postal money order payable 3 1 to the Securities and Exchange Commission, which shall be delivered or mailed to 2 Enterprise Services Center 3 Accounts Receivable Branch 4 6500 South MacArthur Boulevard 5 Oklahoma City, OK 73169 6 and shall be accompanied by a letter identifying the case title, civil action number, 7 and name of this Court; Energy & Environmental Investments, LLC as a defendant 8 in this action; and specifying that payment is made pursuant to this Final 9 Judgment. 10 Defendant shall simultaneously transmit photocopies of evidence of 11 payment and case identifying information to the Commission’s counsel in this 12 action. By making this payment, Defendant relinquishes all legal and equitable 13 right, title, and interest in such funds and no part of the funds shall be returned to 14 Defendant. 15 The Commission may enforce the Court’s judgment for disgorgement and 16 prejudgment interest by using all collection procedures authorized by law, 17 including, but not limited to, moving for civil contempt at any time after 30 days 18 following entry of this Final Judgment. 19 The Commission may enforce the Court’s judgment for penalties by the use 20 of all collection procedures authorized by law, including the Federal Debt 21 Collection Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil 22 contempt for the violation of any Court orders issued in this action. Defendant 23 shall pay post judgment interest on any amounts due after 30 days of the entry of 24 this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the 25 funds, together with any interest and income earned thereon (collectively, the 26 “Fund”), pending further order of the Court. 27 28 The Commission may propose a plan to distribute the Fund subject to the Court’s approval. Such a plan may provide that the Fund shall be distributed 4 1 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act 2 of 2002. The Court shall retain jurisdiction over the administration of any 3 distribution of the Fund and the Fund may only be disbursed pursuant to an Order 4 of the Court. Regardless of whether any such Fair Fund distribution is made, amounts 5 6 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 7 penalties paid to the government for all purposes, including all tax purposes. To 8 preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 9 reduction of any award of compensatory damages in any Related Investor Action 10 based on Defendant’s payment of disgorgement in this action, argue that it is 11 entitled to, nor shall it further benefit by, offset or reduction of such compensatory 12 damages award by the amount of any part of Defendant’s payment of a civil 13 penalty in this action (“Penalty Offset”). If the court in any Related Investor 14 Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of 15 a final order granting the Penalty Offset, notify the Commission’s counsel in this 16 action and pay the amount of the Penalty Offset to the United States Treasury or to 17 a Fair Fund, as the Commission directs. Such a payment shall not be deemed an 18 additional civil penalty and shall not be deemed to change the amount of the civil 19 penalty imposed in this Judgment. For purposes of this paragraph, a “Related 20 Investor Action” means a private damages action brought against Defendant by or 21 on behalf of one or more investors based on substantially the same facts as alleged 22 in the Complaint in this action. 23 IV. 24 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 25 Consent is incorporated herein with the same force and effect as if fully set forth 26 herein, and that Defendant shall comply with all of the undertakings and 27 agreements set forth therein. 28 /// 5 1 V. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 3 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 4 of this Final Judgment. 5 6 7 DATED: May 19, 2023 8 9 10 Hon. Fred W. Slaughter UNITED STATES DISTRICT JUDGE 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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