SEC v. Evarist C. Amah, No. 7:21-cv-06694, Southern District of New York (July 8, 2024) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,
Plaintiff,
v.
EV ARIST C. AMAH,
Defendant.
No. 7:21-CV-6694-KMK
~~ FINAL JUDGMENT AS TO DEFENDANT EV ARIST C. AMAH
The Securities and Exchange Commission having filed a Complaint and Defendant
Evarist
C. Amah ("Defendant" or "Amah") having entered a general appearance, consented to
the Court' s jurisdiction over the Defendant and the subject matter of this action.
The Court having previously  issued an Opinion and Order dated September 28, 2023
granting summary judgment
in favor of the Commission and against the Defendant with respect
to the Commission' s claims against Defendant Amah
[D.E. 61):
I.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is
permanently restrained and enjoined from violating Section l 7(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 of the
mails, directly or indirectly:
(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.
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).
II.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Amah is  permanently
restrained and enjoined from violating, directly or indirectly, Section 1 0(b)
of the Securities
Exchange Act
of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule l0b-5 promulgated
thereunder [17 C.F.R. § 240
.l0b-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
2

( 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, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is
permanently restrained and enjoined from violating Sections 206(1) and (2) of the Investment
Advisers Act
of 1940 (the "Advisers Act") [15 U.S.C. § 80b-6(1) and (2)] by use of the mails or
any means or instrumentality
of interstate commerce, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud any client or prospective
client; or
(b) to engage
in any transaction, practice, or course of business which operates as a
fraud or deceit upon any client or prospective client.
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

IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is
permanently restrained and enjoined from violating Section 206(4) of the Advisers Act (15
U.S.C. § 80b-6(4)] and Adv isers Act Rule 206(4)-8 (17 C.F.R. § 275.206(4)-8] by use of the
mails or any means or instrumentality
of interstate commerce, while engaged in the business of
advising a pooled investment vehicle for compensation as to the advisibility of investing in,
purchasing or selling securities:
(a)
to make any untrue statement of a material fact or to omit to state a material fact
necessary to make the statements made,
in light of the circumstances under which
they were made, not misleading, to any investor or prospective investor
in the
pooled investment vehicle; or
(b) otherwise engage in any act, practice, or course
of business that is fraudulent,
deceptive or manipulative, with respect to any investor or prospective investor
in
the pooled investment vehicle.
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).
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is
liable for disgorgement of $10,000, representing net profits gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon
in the amount of $1617 .82,
4

and a civil penalty in the amount of $669,667 pursuant to 15 U.S.C. §§ 77t(d), 78u(d)(3), and
80b-9( e ). Defendant shall satisfy this obligation by paying $681,284.82 to the Securities and
Exchange Commission within 30 days after entry
of this Final Judgment.
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; Evarist C. Arnah 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
Co~mission's counsel in this action. By making this paymen_!,
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 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 entry
of this Final Judgment.
The Commission may enforce the Court's
judgment for penalties by the use of all
collection procedures authorized by law, including the Federal Debt Collection Procedures Act,
5

28 U.S.C. § 3001 et seq., and moving for civil contempt for the violation of any Court orders
issued
in this action. Defendant shall pay post judgment interest on any amounts due after 30
days
of the entry of this Final Judgment pursuant to 28 U.S.C. §  1961. The Commission shall
hold the funds, together with any interest and income earned thereon ( collectively, the "Fund"),
pending further order
of the Court.
The Commission may propose a plan to distribute the Fund subject to the Court' s
approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund
provisions
of Section 308(a) of the Sarbanes-Oxley Act of 2002.  The Court shall retain
jurisdiction over the administration
of any distribution of the Fund and the Fund may only  be
disbursed pursuant to an Order
of the Court.
Regardless
of whether any such Fair Fund distribution is  made, amounts ordered to be
paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the
government for all purposes, including all tax purposes. To preserve the deterrent effect
of the
civil penalty, Defendant shall not, after offset or reduction
of any award of compensatory
damages in any Related Investor Action based on Defendant's payment
of disgorgement in this
action, argue that he is  entitled to , nor shall he further benefit by, offset or reduction
of such
compensatory damages award by the amount
of any part of Defendant' s payment of a civil
penalty in this action ("Penalty Offset").
If the court in any Related Investor Action grants such
a Penalty Offset, Defendant shall, within 30 days after entry
of a final order granting the Penalty
Offset, notify the Commission' s counsel in this action and pay the amount
of the Penalty Offset
to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall
not be deemed an additional civil penalty and shall not be deemed to change the amount
of the
civil penalty imposed
in this Judgment. For purposes of this paragraph, a "Related Investor
6

Action"  means a private damages action brought against Defendant by or on behalf of one or
more investors based on substantially the same facts as alleged
in the Complaint in this action.
VI.
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.
Dated:
,liily 1
, ---20.2A...
7

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

UNITED STATES SECURITIES AND 
EXCHANGE COMMISSION, 

Plaintiff, 

v. 

EV ARIST C. AMAH, 

Defendant. 

No. 7:21-CV-6694-KMK 

~~ FINAL JUDGMENT AS TO DEFENDANT EV ARIST C. AMAH 

The Securities and Exchange Commission having filed a Complaint and Defendant 

Evarist C. Amah ("Defendant" or "Amah") having entered a general appearance, consented to 

the Court' s jurisdiction over the Defendant and the subject matter of this action. 

The Court having previously issued an Opinion and Order dated September 28, 2023 

granting summary judgment in favor of the Commission and against the Defendant with respect 

to the Commission 's claims against Defendant Amah [D.E. 61) : 

I. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is 

permanently restrained and enjoined from violating Section l 7(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 of the 

mails, directly or indirectly: 

(a) to employ any device, scheme, or artifice to defraud; 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 1 of 7



(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. 

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). 

II. 

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

restrained and enjoined from violating, directly or indirectly, Section 1 0(b) of the Securities 

Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule l0b-5 promulgated 

thereunder [17 C.F.R. § 240.l 0b-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 

2 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 2 of 7



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

participation with Defendant or with anyone described in (a). 

III. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is 

permanently restrained and enjoined from violating Sections 206(1) and (2) of the Investment 

Advisers Act of 1940 (the "Advisers Act") [15 U.S.C. § 80b-6(1) and (2)] by use of the mails or 

any means or instrumentality of interstate commerce, directly or indirectly: 

(a) to employ any device, scheme, or artifice to defraud any client or prospective 

client; or 

(b) to engage in any transaction, practice, or course of business which operates as a 

fraud or deceit upon any client or prospective client. 

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 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 3 of 7



IV. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is 

permanently restrained and enjoined from violating Section 206(4) of the Advisers Act (15 

U.S.C. § 80b-6(4)] and Advisers Act Rule 206(4)-8 (17 C.F.R. § 275.206(4)-8] by use of the 

mails or any means or instrumentality of interstate commerce, while engaged in the business of 

advising a pooled investment vehicle for compensation as to the advisibility of investing in, 

purchasing or selling securities: 

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

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

they were made, not misleading, to any investor or prospective investor in the 

pooled investment vehicle; or 

(b) otherwise engage in any act, practice, or course of business that is fraudulent, 

deceptive or manipulative, with respect to any investor or prospective investor in 

the pooled investment vehicle. 

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). 

V. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Amah is 

liable for disgorgement of $10,000, representing net profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of $1617 .82, 

4 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 4 of 7



and a civil penalty in the amount of $669,667 pursuant to 15 U.S.C. §§ 77t(d), 78u(d)(3), and 

80b-9( e ). Defendant shall satisfy this obligation by paying $681 ,284.82 to the Securities and 

Exchange Commission within 30 days after entry of this Final Judgment. 

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; Evarist C. Arnah 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 Co~mission's counsel in this action. By making this paymen_!, 

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 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 entry of this Final Judgment. 

The Commission may enforce the Court's judgment for penalties by the use of all 

collection procedures authorized by law, including the Federal Debt Collection Procedures Act, 

5 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 5 of 7



28 U.S.C. § 3001 et seq. , and moving for civil contempt for the violation of any Court orders 

issued in this action. Defendant shall pay post judgment interest on any amounts due after 30 

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

hold the funds, together with any interest and income earned thereon ( collectively, the "Fund"), 

pending further order of the Court. 

The Commission may propose a plan to distribute the Fund subject to the Court' s 

approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund 

provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain 

jurisdiction over the administration of any distribution of the Fund and the Fund may only be 

disbursed pursuant to an Order of the Court. 

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 

paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the 

government for all purposes, including all tax purposes. To preserve the deterrent effect of the 

civil penalty, Defendant shall not, after offset or reduction of any award of compensatory 

damages in any Related Investor Action based on Defendant's payment of disgorgement in this 

action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such 

compensatory damages award by the amount of any part of Defendant' s payment of a civil 

penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such 

a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty 

Offset, notify the Commission' s counsel in this action and pay the amount of the Penalty Offset 

to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall 

not be deemed an additional civil penalty and shall not be deemed to change the amount of the 

civil penalty imposed in this Judgment. For purposes of this paragraph, a "Related Investor 

6 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 6 of 7



Action" means a private damages action brought against Defendant by or on behalf of one or 

more investors based on substantially the same facts as alleged in the Complaint in this action. 

VI. 

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. 

Dated: ,liily 1 , ---20.2A... 

7 

Case 7:21-cv-06694-KMK-VR   Document 77   Filed 07/02/24   Page 7 of 7