Securities and Exchange Commission v. Medient Studios, Inc. et al
Filing
68
DEFAULT JUDGMENT against Manu Kumaran. Signed by Deputy Clerk on November 17, 2020. (jrb)
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 1 of 9
IN THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF GEORGIA
SAVANNAH DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
)
)
)
)
)
)
)
)
)
)
)
Plaintiff,
v.
MANU KUMARAN,
Defendant.
CASE NO. CV416-253
JUDGMENT IN A CIVIL CASE
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating, directly or
indirectly, Section 10(b) of the Securities Exchange Act of 1934
(the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated
thereunder
[17
C.F.R.
§
240.10b-5],
by
using
any
means
or
instrumentality of interstate commerce, or of the mails, or of any
facility of any national securities exchange, in connection with
the purchase or sale of any security:
(a)
to employ any device, scheme, or artifice to defraud;
(b)
to make any untrue statement of a material fact or to
omit to state a material fact necessary in order to make
the statements made, in the light of the circumstances
under which they were made, not misleading; or
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 2 of 9
(c)
to engage in any act, practice, or course of business
which operates or would operate as a fraud or deceit upon
any person
by, directly or indirectly, (i) creating a false appearance or
otherwise deceiving any person about the price or trading market
for any security, or (ii) making any false or misleading statement,
or disseminating any false or misleading documents, materials, or
information,
concerning
matters
relating
to
a
decision
by
an
investor or prospective investor to buy or sell securities of any
company.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided
in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph
also binds the following who receive actual notice of this Final
Judgment
by
personal
service
or
otherwise:
(a)
Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant or with
anyone described in (a).
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from violating
Section 17(a) of the Securities Act of 1933 (the “Securities Act”)
[15 U.S.C. § 77q(a)] in the offer or sale of any security by the
use of any means or instruments of transportation or communication
in
interstate
commerce
or
by
use
indirectly:
2
of
the
mails,
directly
or
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 3 of 9
(a)
to employ any device, scheme, or artifice to defraud;
(b)
to obtain money or property by means of any untrue
statement of a material fact or any omission of a material
fact necessary in order to make the statements made, in
light of the circumstances under which they were made,
not misleading; or
(c)
to engage in any transaction, practice, or course of
business which operates or would operate as a fraud or
deceit upon the purchaser.
by, directly or indirectly, (i) creating a false appearance or
otherwise deceiving any person about the price or trading market
for any security, or (ii) making any false or misleading statement,
or disseminating any false or misleading documents, materials, or
information,
concerning
matters
relating
to
a
decision
by
an
investor or prospective investor to buy or sell securities of any
company.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided
in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph
also binds the following who receive actual notice of this Final
Judgment
by
personal
service
or
otherwise:
(a)
Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant or with
anyone described in (a).
3
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 4 of 9
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from violating
Section 5 of the 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)
4
any
public
proceeding
or
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 5 of 9
examination under Section 8 of the Securities Act [15
U.S.C. § 77h].
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided
in
Federal
Rule
of
Civil
Procedure
65(d)(2),
the
foregoing
paragraph also binds the following who receive actual notice of
this
Final
Judgment
by
personal
service
or
otherwise:
(a)
Defendant’s officers, agents, servants, employees, and attorneys;
and (b) other persons in active concert or participation with
Defendant or with anyone described in (a).
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from aiding and
abetting any violation of Section 13(a) of the Exchange Act [15
U.S.C. § 78m(a)] and Rules 12b-20 and 13a-1 promulgated thereunder
[17 C.F.R. §§ 240.12b-20 and 240.13a-1] by knowingly or recklessly
providing substantial assistance to an issuer that failed to file
with the Commission true and correct annual reports made on Form
10-K and current reports made on Form 8-K that contain all material
information necessary to make the required statements in the
reports, in the light of the circumstances under which they are
made, not misleading.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided
in
Federal
Rule
of
Civil
Procedure
65(d)(2),
the
foregoing
paragraph also binds the following who receive actual notice of
this
Final
Judgment
by
personal
5
service
or
otherwise:
(a)
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 6 of 9
Defendant’s officers, agents, servants, employees, and attorneys;
and (b) other persons in active concert or participation with
Defendant or with anyone described in (a).
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is permanently restrained and enjoined from aiding and
abetting any violation Section 14(c) of the Exchange Act and Rule
14c-6 promulgated thereunder [17 C.F.R. § 240.14c-6], by knowingly
or recklessly providing substantial assistance to an issuer that
filed with the Commission, or providing, in lieu of a proxy
statement, to any investor, an information statement on Schedule
14C [17 C.F.R. § 14c-101] containing any statement which, at the
time and in the light of the circumstances under which it is made,
is false or misleading with respect to any material fact, or which
omits to state any material fact necessary in order to make the
statements therein not false or misleading or necessary to correct
any statement in any earlier communication with respect to the same
meeting or subject matter which has become false or misleading.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided
in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph
also binds the following who receive actual notice of this Final
Judgment
by
personal
service
or
otherwise:
(a)
Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant or with
anyone described in (a).
6
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 7 of 9
IT IS HEREBY FURTHER ORDERDED, ADJUDGED, AND DECREED that,
pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C.
§ 78u(d)(2)] and Section 20(e) of the Securities Act [15 U.S.C.
§ 77t(e)], Defendant is prohibited from acting as an officer or
director of any issuer that has a class of securities registered
pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] or
that is required to file reports pursuant to Section 15(d) of the
Exchange Act [15 U.S.C. § 78o(d)].
IT IS HEREBY FURTHER ORDERDED, ADJUDGED, AND DECREED that
Defendant is permanently barred 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 Exchange
Act [17 C.F.R. 240.3a51-1]
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is liable for disgorgement of $130,028.56, representing
profits gained as a result of the conduct alleged in the Complaint,
together
with
prejudgment
interest
thereon
in
the
amount
of
$26,246.30, for a total of $156,274.86, and a civil penalty in the
amount of $130,028.56 pursuant to Section 20(d) of the Securities
Act and Section 21(d)(3) of the Exchange Act. Defendant shall
7
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 8 of 9
satisfy these obligations by paying the disgorgement, prejudgment
interest
thereon,
and
civil
penalty
in
the
total
amount
of
$286,303.42 to the Securities and Exchange Commission within 14
days after entry of this Final Judgment.
Defendant
Commission,
may
which
transmit
will
payment
provide
electronically
detailed
ACH
to
the
transfer/Fedwire
instructions upon request. Payment may also be made directly from
a
bank
account
via
Pay.gov
through
the
SEC
website
at
http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay
by certified check, bank cashier’s check, or United States postal
money order payable to the Securities and Exchange Commission,
which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title,
civil action number, and name of this Court; Medient Studios, Inc.,
as a defendant in this action; and specifying that payment is made
pursuant to this Final Judgment.
Defendant
evidence
of
shall
payment
simultaneously
and
case
transmit
identifying
photocopies
information
to
of
the
Commission’s counsel in this action. By making this payment,
Defendant relinquishes all legal and equitable right, title, and
interest in such funds and no part of the funds shall be returned
8
Case 4:16-cv-00253-WTM-CLR Document 68 Filed 11/17/20 Page 9 of 9
to Defendant. The Commission shall send the funds paid pursuant to
this Final Judgment to the United States Treasury.
The
Commission
may
enforce
the
Court’s
judgment
for
disgorgement and prejudgment interest by moving for civil contempt
(and/or through other collection procedures authorized by law) at
any time after 14 days following entry of this Final Judgment.
Defendant shall pay post judgment interest on any delinquent
amounts pursuant to 28 U.S.C. § 1961.
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.
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. The
Clerk of Court is DIRECTED to close this case.
Date: November 17, 2020
John E. Tripplett, Acting Clerk
Clerk
_______________________________
(By) Deputy Clerk
9
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