Securities and Exchange Commission v. Energy and Environmental Investments, LLC et al

Filing 23

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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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SOUTHERN DIVISION

JS-6

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

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vs.

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Case No. 8:23-cv-00338-FWS-JDE
FINAL JUDGMENT AS TO
DEFENDANT NARYSA SARDARI
LUDDY [8]

ENERGY & ENVIRONMENTAL
INVESTMENTS, LLC; ENERGY &
ENVIRONMENT, INC.; AMIR A.
SARDARI; and NARYSA SARDARI
LUDDY,

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Defendants.

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FINAL JUDGMENT AS TO DEFENDANT NARYSA SARDARI LUDDY

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The Securities and Exchange Commission having filed a Complaint and

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Defendant Narysa Sardari Luddy having entered a general appearance; consented

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to the Court’s jurisdiction over Defendant and the subject matter of this action;

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consented to entry of this Final Judgment; waived findings of fact and conclusions

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of law; and waived any right to appeal from this Final Judgment:

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///

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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is permanently restrained and enjoined from violating, directly or indirectly,

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Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15

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U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5],

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by using any means or instrumentality of interstate commerce, or of the mails, or

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of any facility of any national securities exchange, in connection with the purchase

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or sale of any security:

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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to make any untrue statement of a material fact or to omit to state a

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material fact necessary in order to make the statements made, in the

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light of the circumstances under which they were made, not

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misleading; or

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(c)

to engage in any act, practice, or course of business which operates or
would operate as a fraud or deceit upon any person.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Final Judgment by personal

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service or otherwise: (a) Defendant’s officers, agents, servants, employees, and

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attorneys; and (b) other persons in active concert or participation with Defendant

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or with anyone described in (a).
II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant is permanently restrained and enjoined from violating Section 17(a)

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of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the

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offer or sale of any security by the use of any means or instruments of

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transportation or communication in interstate commerce or by use of the mails,

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directly or indirectly:
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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to obtain money or property by means of any untrue statement of a

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material fact or any omission of a material fact necessary in order to

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make the statements made, in light of the circumstances under which

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they were made, not misleading; or

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(c)

to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Final Judgment by personal

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service or otherwise: (a) Defendant’s officers, agents, servants, employees, and

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attorneys; and (b) other persons in active concert or participation with Defendant

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or with anyone described in (a).
III.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant

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to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant is

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permanently restrained and enjoined from directly or indirectly, including, but not

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limited to, through any entity owned or controlled by her, participating in the

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issuance, purchase, offer, or sale of any security in an unregistered transaction,

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provided, however, that such injunction shall not prevent her from purchasing or

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selling securities listed on a national securities exchange for her own personal

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account.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Final Judgment by personal

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service or otherwise: (a) Defendant’s officers, agents, servants, employees, and

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attorneys; and (b) other persons in active concert or participation with Defendant

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or with anyone described in (a).
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IV.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that,

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pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and

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Section 20(e) of the Securities Act [15 U.S.C. § 77t(e)], Defendant is permanently

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prohibited from acting as an officer or director of any issuer that has a class of

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securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]

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or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15

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U.S.C. § 78o(d)].

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V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant is liable for disgorgement of $1,009,191.86, representing net profits

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gained as a result of the conduct alleged in the Complaint, together with

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prejudgment interest thereon in the amount of $289,014.72. Defendant shall

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satisfy this obligation by paying $1,298,206.58 to the Securities and Exchange

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Commission within 30 days after entry of this Final Judgment.

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Defendant may transmit payment electronically to the Commission, which

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will provide detailed ACH transfer/Fedwire instructions upon request. Payment

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may also be made directly from a bank account via Pay.gov through the SEC

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website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by

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certified check, bank cashier’s check, or United States postal money order payable

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to the Securities and Exchange Commission, which shall be delivered or mailed to

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard

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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Narysa Sardari Luddy as a defendant in this action; and

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specifying that payment is made pursuant to this Final Judgment. Defendant’s
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obligation may also be satisfied in full or in part by proceeds of Defendant Energy

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& Environment, Inc.’s sale of the LNG Plant Equipment described in paragraph

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(3)(e) of the Consent of Defendant Narysa Sardari Luddy.

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Defendant shall simultaneously transmit photocopies of evidence of

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payment and case identifying information to the Commission’s counsel in this

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action. By making this payment, Defendant relinquishes all legal and equitable

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right, title, and interest in such funds and no part of the funds shall be returned to

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Defendant.

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The Commission may enforce the Court’s judgment for disgorgement and

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prejudgment interest by using all collection procedures authorized by law,

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including, but not limited to, moving for civil contempt at any time after 30 days

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following entry of this Final Judgment.

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Defendant shall pay post judgment interest on any amounts due after 30 days

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of the entry of this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission

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shall hold the funds, together with any interest and income earned thereon

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(collectively, the “Fund”), pending further order of the Court.

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The Commission may propose a plan to distribute the Fund subject to the

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Court’s approval. Such a plan may provide that the Fund shall be distributed

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pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act

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of 2002. The Court shall retain jurisdiction over the administration of any

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distribution of the Fund and the Fund may only be disbursed pursuant to an Order

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of the Court.

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VI.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

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Consent is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and

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agreements set forth therein.

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VII.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely

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for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy

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Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by

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Defendant, and further, any debt for disgorgement, prejudgment interest, civil

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penalty or other amounts due by Defendant under this Final Judgment or any other

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judgment, order, consent order, decree or settlement agreement entered in

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connection with this proceeding, is a debt for the violation by Defendant of the

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federal securities laws or any regulation or order issued under such laws, as set

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forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).

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VIII.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this

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Court shall retain jurisdiction of this matter for the purposes of enforcing the terms

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of this Final Judgment.

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DATED: May 19, 2023

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Hon. Fred W. Slaughter
UNITED STATES DISTRICT JUDGE

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