Securities and Exchange Commission v. Energy and Environmental Investments, LLC et al, No. 8:2023cv00338 - Document 23 (C.D. Cal. 2023)
Court Description: FINAL JUDGMENT AS TO DEFENDANT NARYSA SARDARI LUDDY 8 by Judge Fred W. Slaughter. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined. FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $1,009,191.86, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $289,014.72. Defendant shall satisfy this obligation by paying $1,298,206.58 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. (MD JS-6, Case Terminated). See document for further information. (jp)
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Securities and Exchange Commission v. Energy and Environmental Investments, LLC et al Doc. 23 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION JS-6 11 12 13 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 14 17 18 FINAL JUDGMENT AS TO DEFENDANT NARYSA SARDARI LUDDY [8] vs. 15 16 Case No. 8:23-cv-00338-FWS-JDE ENERGY & ENVIRONMENTAL INVESTMENTS, LLC; ENERGY & ENVIRONMENT, INC.; AMIR A. SARDARI; and NARYSA SARDARI LUDDY, 19 Defendants. 20 21 FINAL JUDGMENT AS TO DEFENDANT NARYSA SARDARI LUDDY 22 The Securities and Exchange Commission having filed a Complaint and 23 Defendant Narysa Sardari Luddy having entered a general appearance; consented 24 to the Court’s jurisdiction over Defendant and the subject matter of this action; 25 consented to entry of this Final Judgment; waived findings of fact and conclusions 26 of law; and waived any right to appeal from this Final Judgment: 27 /// 28 1 Dockets.Justia.com I. 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 3 is permanently restrained and enjoined from violating, directly or indirectly, 4 Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 5 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], 6 by using any means or instrumentality of interstate commerce, or of the mails, or 7 of any facility of any national securities exchange, in connection with the purchase 8 or sale of 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 12 light of the circumstances under which they were made, not 13 misleading; or 14 15 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 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 21 or with anyone described in (a). II. 22 23 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 24 that Defendant is permanently restrained and enjoined from violating Section 17(a) 25 of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the 26 offer or sale of any security by the use of any means or instruments of 27 transportation or communication in interstate commerce or by use of the mails, 28 directly or indirectly: 2 1 (a) to employ any device, scheme, or artifice to defraud; 2 (b) to obtain money or property by means of any untrue statement of a 3 material fact or any omission of a material fact necessary in order to 4 make the statements made, in light of the circumstances under which 5 they were made, not misleading; or 6 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 7 8 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 9 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 10 binds the following who receive actual notice of this Final Judgment by personal 11 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 12 attorneys; and (b) other persons in active concert or participation with Defendant 13 or with anyone described in (a). III. 14 15 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant 16 to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant is 17 permanently restrained and enjoined from directly or indirectly, including, but not 18 limited to, through any entity owned or controlled by her, participating in the 19 issuance, purchase, offer, or sale of any security in an unregistered transaction, 20 provided, however, that such injunction shall not prevent her from purchasing or 21 selling securities listed on a national securities exchange for her own personal 22 account. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 24 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 25 binds the following who receive actual notice of this Final Judgment by personal 26 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 27 attorneys; and (b) other persons in active concert or participation with Defendant 28 or with anyone described in (a). 3 IV. 1 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, 3 pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and 4 Section 20(e) of the Securities Act [15 U.S.C. § 77t(e)], Defendant is permanently 5 prohibited from acting as an officer or director of any issuer that has a class of 6 securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] 7 or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 8 U.S.C. § 78o(d)]. 9 10 V. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 11 that Defendant is liable for disgorgement of $1,009,191.86, representing net profits 12 gained as a result of the conduct alleged in the Complaint, together with 13 prejudgment interest thereon in the amount of $289,014.72. Defendant shall 14 satisfy this obligation by paying $1,298,206.58 to the Securities and Exchange 15 Commission within 30 days after entry of this Final Judgment. 16 Defendant may transmit payment electronically to the Commission, which 17 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 18 may also be made directly from a bank account via Pay.gov through the SEC 19 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 20 certified check, bank cashier’s check, or United States postal money order payable 21 to the Securities and Exchange Commission, which shall be delivered or mailed to 22 Enterprise Services Center 23 Accounts Receivable Branch 24 6500 South MacArthur Boulevard 25 Oklahoma City, OK 73169 26 and shall be accompanied by a letter identifying the case title, civil action number, 27 and name of this Court; Narysa Sardari Luddy as a defendant in this action; and 28 specifying that payment is made pursuant to this Final Judgment. Defendant’s 4 1 obligation may also be satisfied in full or in part by proceeds of Defendant Energy 2 & Environment, Inc.’s sale of the LNG Plant Equipment described in paragraph 3 (3)(e) of the Consent of Defendant Narysa Sardari Luddy. 4 Defendant shall simultaneously transmit photocopies of evidence of 5 payment and case identifying information to the Commission’s counsel in this 6 action. By making this payment, Defendant relinquishes all legal and equitable 7 right, title, and interest in such funds and no part of the funds shall be returned to 8 Defendant. 9 The Commission may enforce the Court’s judgment for disgorgement and 10 prejudgment interest by using all collection procedures authorized by law, 11 including, but not limited to, moving for civil contempt at any time after 30 days 12 following entry of this Final Judgment. 13 Defendant shall pay post judgment interest on any amounts due after 30 days 14 of the entry of this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission 15 shall hold the funds, together with any interest and income earned thereon 16 (collectively, the “Fund”), pending further order of the Court. 17 The Commission may propose a plan to distribute the Fund subject to the 18 Court’s approval. Such a plan may provide that the Fund shall be distributed 19 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act 20 of 2002. The Court shall retain jurisdiction over the administration of any 21 distribution of the Fund and the Fund may only be disbursed pursuant to an Order 22 of the Court. 23 VI. 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 VII. 1 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 3 for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy 4 Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by 5 Defendant, and further, any debt for disgorgement, prejudgment interest, civil 6 penalty or other amounts due by Defendant under this Final Judgment or any other 7 judgment, order, consent order, decree or settlement agreement entered in 8 connection with this proceeding, is a debt for the violation by Defendant of the 9 federal securities laws or any regulation or order issued under such laws, as set 10 forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). 11 VIII. 12 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 13 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 14 of this Final Judgment. 15 16 DATED: May 19, 2023 17 18 19 Hon. Fred W. Slaughter UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 6
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