12/04/2007 262 JUDGMENT #07,2308 in favor of U.S. Securities and Exchange Commission against Tarun Mendiratta in the amount of $ 415,800.00. (Signed by Judge Gerard E. Lynch on 12/4/07) (Attachments: # 1 CONSENT, # 2 NOTICE OF RIGHT TO APPEAL)(ml) (Entered: 12/04/2007)
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Doc 262 extract
JUDGMENT AS TO DEFENDANT TARUN MENDIRATTA
The Securities and Exchange Commission having filed a complaint, and Defendant Tarun Mendiratta ("Mendiratta") having filed an answer, admitted the Court's jurisdiction over Mendiratta and the subject matter of this action, consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction), waived findings of fact and conclusions of law, and waived any right to appeal from this Judgment:
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Mendiratta and his agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act of 1933 ("Securities Act") [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption:
(a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise;
(b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or
(c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h].
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Mendiratta is barred for a period of three years from the date of this Judgment from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock. A penny stock is any equity security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the Securities Exchange Act of 1934 [17 C.F.R. § 240.3a51-1].
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Mendiratta shall pay disgorgement of $385,000, representing ill-gotten gains from the activities alleged in the complaint, plus prejudgment interest thereon of $30,800, for total disgorgement of $415,800. Mendiratta shall satisfy this obligation by paying $415,800 to the Clerk of this Court within ten business days of entry of this Judgment, together with a cover letter identifying Mendiratta as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of such payment and letter to the SEC's counsel in this action. By making this payment, Mendiratta relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Mendiratta. The Clerk shall deposit the funds into an interest bearing account with the Court Registry Investment System ("CRIS") or any other type of interest bearing account that is utilized by the Court. These funds, together with any interest and income earned thereon (collectively, the "Fund"), shall be held in the interest bearing account until further order of the Court.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Mendiratta shall comply with all of the undertakings and agreements set forth therein.
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
VI.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.
Dated: December 4, 2007
Signature of Gerard E. Lynch
United States District Judge |
