SEC v. Sivannarayana Barama, No. 5:19-CV-08207-RS, Northern District of California (July 29, 2024) — Judgment

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MONIQUE C. WINKLER (Cal. Bar No. 213031)
   [email protected]
SUSAN F. LaMARCA (Cal. Bar No. 215231)
  [email protected]
JOHN P. MOGG (Cal. Bar No. 219875)
  [email protected]
CHRISTINA N. FILIPP (Cal. Bar No. 287919)
  [email protected]

Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
44 Montgomery Street, Suite 2800
San Francisco, California 94104
Telephone:  (415) 705-2500
Facsimile:  (415) 705-2501

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

 vs.

SIVANNARAYANA BARAMA,

Defendant.

Case No. 19-CV-08207-RS

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT SIVANNARAYANA BARAMA

AS MODIFIED BY THE COURT

Hon. Richard Seeborg, Chief Judge

Plaintiff Securities and Exchange Commission (“SEC”) moved for summary judgment on its
claims that Defendant Sivannarayana Barama (“Defendant” or “Barama”) violated 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], based on the preclusive effect of the judgment
against Defendant in the related, criminal case, entitled United States v. Sivannarayana Barama, No.
19-CR-00463-RS (N.D. Cal.).  Defendant Barama was charged in the related criminal case with
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT SIVANNARAYANA BARAMA
2 CASE NO. 19-CV-08207-RS

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violations of criminal securities fraud under 18 U.S.C. § 1348(2), based on Defendant’s use of
material nonpublic information provided to him by an insider, former Defendant Janardhan Nellore
(“Nellore”), to trade illegally in the securities of Palo Alto Networks, Inc. (“PANW”) ahead of four
quarterly earnings announcements by the company on November 21, 2016, February 28, 2017, May
31, 2017, and August 31, 2017.  The SEC in this action alleges that Defendant Barama violated
Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R.
§ 240.10b-5], by his trading in the securities of PANW on the basis of material nonpublic
information provided to him by Nellore, ahead of the same four earnings announcements, and
illegally profited in the amount of $6,283,079.  The SEC seeks a judgment against Barama with a
permanent injunction, disgorgement, and prejudgment interest.
The Court finds that the record and evidence presented in the criminal case against Defendant
Barama precludes relitigation of Defendant’s liability here, and the SEC’s motion for summary
judgment is, therefore, GRANTED, with the relief ordered below:
I.
 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently
restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act [15
U.S.C. § 78j(b)] and Rule 10b-5 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
(c) to engage in any act, practice, or course of business which operates or would
 operate as a fraud or deceit upon any person.
 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,

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT SIVANNARAYANA BARAMA
3 CASE NO. 19-CV-08207-RS

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agents, servants, employees, and attorneys; and (b) other persons in active concert or participation
with Defendant or with anyone described in (a).
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for
disgorgement of $6,283,079, representing profits gained as a result of Defendant’s illegal trading,
together with prejudgment interest thereon in the amount of $2,179,658.  The Court finds that
sending the disgorged funds to the United States Treasury, as ordered below, is consistent with
equitable principles.  Defendant shall satisfy these obligations by paying $8,462,737 to the Securities
and Exchange Commission within 30 days of any final disposition of the appeal in the related,
criminal case, entitled United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D. Cal.)
that does not effect a reversal of the judgment in that action.
 Defendant may transmit payment electronically to the Commission, which will provide
detailed ACH 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; Sivannarayana Barama as a defendant in this action; and specifying that payment is made
pursuant to this Final Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
identifying information to 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 to Defendant.  The Commission shall send the funds paid pursuant to this
Final Judgment to the United States Treasury.

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT SIVANNARAYANA BARAMA
4 CASE NO. 19-CV-08207-RS

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The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by using all collection procedures authorized by law, including, but not limited to, moving
for civil contempt at any time after 30 days following any final disposition of the appeal in the
related, criminal case, entitled United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D.
Cal.) that does not effect a reversal of the judgment in that action.
 Post judgment interest on this Final Judgment shall accrue from this date of entry pursuant to
28 U.S.C. § 1961.
III.
 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.
IV.
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.

IT IS SO ORDERED.

Dated:  July 25, 2024                        ____________________________________
    RICHARD SEEBORG
Chief United States District Judge

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MONIQUE C. WINKLER (Cal. Bar No. 213031) 
   [email protected] 
SUSAN F. LaMARCA (Cal. Bar No. 215231) 
  [email protected] 
JOHN P. MOGG (Cal. Bar No. 219875) 
  [email protected] 
CHRISTINA N. FILIPP (Cal. Bar No. 287919) 
  [email protected] 
  
Attorneys for Plaintiff 
SECURITIES AND EXCHANGE COMMISSION 
44 Montgomery Street, Suite 2800 
San Francisco, California 94104 
Telephone:  (415) 705-2500 
Facsimile:  (415) 705-2501 
 
 

SECURITIES AND EXCHANGE COMMISSION, 
 

Plaintiff, 
 
 vs. 
 
SIVANNARAYANA BARAMA,  
 

Defendant. 
 
 

Case No. 19-CV-08207-RS 
 
 
[PROPOSED] FINAL JUDGMENT AS TO 
DEFENDANT SIVANNARAYANA BARAMA 
 
AS MODIFIED BY THE COURT 
 
 
Hon. Richard Seeborg, Chief Judge 
 

 

Plaintiff Securities and Exchange Commission (“SEC”) moved for summary judgment on its 

claims that Defendant Sivannarayana Barama (“Defendant” or “Barama”) violated 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], based on the preclusive effect of the judgment 

against Defendant in the related, criminal case, entitled United States v. Sivannarayana Barama, No. 

19-CR-00463-RS (N.D. Cal.).  Defendant Barama was charged in the related criminal case with 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

Case 3:19-cv-08207-RS   Document 103   Filed 07/25/24   Page 1 of 4



 

[PROPOSED] FINAL JUDGMENT AS TO 

DEFENDANT SIVANNARAYANA BARAMA 

2 CASE NO. 19-CV-08207-RS 

 

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violations of criminal securities fraud under 18 U.S.C. § 1348(2), based on Defendant’s use of 

material nonpublic information provided to him by an insider, former Defendant Janardhan Nellore 

(“Nellore”), to trade illegally in the securities of Palo Alto Networks, Inc. (“PANW”) ahead of four 

quarterly earnings announcements by the company on November 21, 2016, February 28, 2017, May 

31, 2017, and August 31, 2017.  The SEC in this action alleges that Defendant Barama violated 

Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. 

§ 240.10b-5], by his trading in the securities of PANW on the basis of material nonpublic 

information provided to him by Nellore, ahead of the same four earnings announcements, and 

illegally profited in the amount of $6,283,079.  The SEC seeks a judgment against Barama with a 

permanent injunction, disgorgement, and prejudgment interest. 

The Court finds that the record and evidence presented in the criminal case against Defendant 

Barama precludes relitigation of Defendant’s liability here, and the SEC’s motion for summary 

judgment is, therefore, GRANTED, with the relief ordered below: 

I. 

 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently 

restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act [15 

U.S.C. § 78j(b)] and Rule 10b-5 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 

(c) to engage in any act, practice, or course of business which operates or would 

 operate as a fraud or deceit upon any person. 

 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, 

Case 3:19-cv-08207-RS   Document 103   Filed 07/25/24   Page 2 of 4



 

[PROPOSED] FINAL JUDGMENT AS TO 

DEFENDANT SIVANNARAYANA BARAMA 

3 CASE NO. 19-CV-08207-RS 

 

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agents, servants, employees, and attorneys; and (b) other persons in active concert or participation 

with Defendant or with anyone described in (a). 

II. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for 

disgorgement of $6,283,079, representing profits gained as a result of Defendant’s illegal trading, 

together with prejudgment interest thereon in the amount of $2,179,658.  The Court finds that 

sending the disgorged funds to the United States Treasury, as ordered below, is consistent with 

equitable principles.  Defendant shall satisfy these obligations by paying $8,462,737 to the Securities 

and Exchange Commission within 30 days of any final disposition of the appeal in the related, 

criminal case, entitled United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D. Cal.) 

that does not effect a reversal of the judgment in that action. 

 Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH 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; Sivannarayana Barama as a defendant in this action; and specifying that payment is made 

pursuant to this Final Judgment. 

Defendant shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to 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 to Defendant.  The Commission shall send the funds paid pursuant to this 

Final Judgment to the United States Treasury.   

Case 3:19-cv-08207-RS   Document 103   Filed 07/25/24   Page 3 of 4

http://www.sec.gov/about/offices/ofm.htm


 

[PROPOSED] FINAL JUDGMENT AS TO 

DEFENDANT SIVANNARAYANA BARAMA 

4 CASE NO. 19-CV-08207-RS 

 

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

interest by using all collection procedures authorized by law, including, but not limited to, moving 

for civil contempt at any time after 30 days following any final disposition of the appeal in the 

related, criminal case, entitled United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D. 

Cal.) that does not effect a reversal of the judgment in that action. 

 Post judgment interest on this Final Judgment shall accrue from this date of entry pursuant to 

28 U.S.C. § 1961.   

III.  

 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. 

IV.  

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. 

 

IT IS SO ORDERED. 
 
 
 
 

Dated:  July 25, 2024                        ____________________________________ 

    RICHARD SEEBORG 
Chief United States District Judge 

 

Case 3:19-cv-08207-RS   Document 103   Filed 07/25/24   Page 4 of 4