SEC v. Ashmit Patel, No. 3:20-cv-01864, Southern District of California (June 20, 2025) — Judgment
raw: SEC v. ONGKARUCK SRIPETCH; AMANDA
SEC v. ONGKARUCK SRIPETCH; AMANDA, No. 3:20-cv-01864 (June 20, 2025)
summary
The SEC obtained a final default judgment against Ashmit Patel for securities fraud, resulting in a permanent injunction and a total payment of $1,318,668.41.
paragraph
The court ordered Ashmit Patel to pay $918,827.41 in disgorgement plus $399,841.00 in prejudgment interest, totaling $1,318,668.41. Patel is permanently enjoined from violating Section 10(b) of the Exchange Act and Section 17(a) of the Securities Act. Additionally, the judgment imposes a permanent bar against participating in any penny stock offerings.
narrative
The Securities and Exchange Commission successfully obtained a final default judgment against defendant Ashmit Patel in the Southern District of California. The judgment addresses violations of Section 10(b) of the Securities Exchange Act of 1934 and Section 17(a) of the Securities Act of 1933 involving fraudulent schemes. Patel is permanently enjoined from engaging in any device, scheme, or artifice to defraud in connection with the purchase or sale of securities. Furthermore, the court imposed a permanent bar prohibiting him from participating in any penny stock offerings. Financially, Patel is liable for $918,827.41 in disgorgement of net profits and $399,841.00 in prejudgment interest. The total obligation of $1,318,668.41 must be paid to the SEC within 30 days. This judgment follows an enforcement action involving several other defendants and entities.
Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
15 U.S.C. § 78j(b)15 U.S.C. § 77q(a)28 U.S.C. § 196117 C.F.R. § 240.10b-517 C.F.R. 240.3a51-1Section 10(b) of the Securities Exchange ActSection 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionOngkaruck SripetchAshmit PatelAdtron Inc.King Mutual Solutions Inc.Optimus Prime Financial Inc.Doit, LtdRedline InternationalDominic WilliamsBrehnen KnightAmanda FloresMichael WexlerATG Inc.Doji Capital, Inc.UAIM CorporationAndrew McAlpineOrca Bridge
Keywords
patelordered adjudgedadjudged decreedsecurities exchangefurther orderedcv-finalorderedsecuritiesexchangecommissionfurtherexchange commissionashmit patelcivil procedure
Extracted insights
Dollar amounts 3
- $1.32M $1,318,668 $1M–$10M
- $919K $918,827 $100K–$1M
- $400K $399,841 $100K–$1M
Entities 1
- agency Securities and Exchange Commission
Triples 5
- Securities And Exchange Commission filed motion for default judgment against Ashmit Patel
- Court entered final default judgment against Ashmit Patel
- Court restrained and enjoined Ashmit Patel from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
- Court restrained and enjoined Ashmit Patel from violating Section 17(a) of the Securities Act of 1933
- Court barred Ashmit Patel from participating in an offering of penny stock
Text layers
Extracted body text (6,909c)
1
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
ONGKARUCK SRIPETCH; AMANDA
FLORES; BREHNEN KNIGHT;
ANDREW MCALPINE, ASHMIT
PATEL; MICHAEL WEXLER;
DOMINIC WILLIAMS; ADTRON INC.
a/k/a STOCKPALOOZA.COM; ATG
INC.; DOIT, LTD.; DOJI CAPITAL,
INC.; KING MUTUAL SOLUTIONS
INC.; OPTIMUS PRIME FINANCIAL
INC.; ORCA BRIDGE; REDLINE
INTERNATIONAL; and UAIM
CORPORATION,
Defendants.
Case No.: 20-cv-01864-H-AGS
DEFAULT JUDGMENT AGAINST
DEFENDANT ASHMIT PATEL
Pursuant to the Court’s April 15, 2024 order granting Plaintiff Securities and
Exchange Commission (“SEC”)’s motion for default judgment against Defendant Ashmit
Patel pursuant to Federal Rule of Civil Procedure 55(b), (Doc. No. 170), the Court enters
the following final default judgment against Defendant Patel:
2
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant Patel
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; or
(b) 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 Patel’s officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant Patel or with anyone described in
(a).
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel 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 of the mails, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud; or
(b) 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)
3
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Defendant Patel’s officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant Patel or with anyone described in
(a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel 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.
IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel is liable for disgorgement of $918,827.41, representing net profits gained
as a result of the conduct alleged in the operative Complaint, together with prejudgment
interest thereon in the amount of $399,841.00, for a total of $1,318,668.41. Defendant
Patel must satisfy this obligation by paying $1,318,668.41 to the Securities and Exchange
Commission within 30 days after entry of this Final Judgment.
Defendant Patel 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 Patel may also pay by certified
check, bank cashier’s check, or United States postal money order payable to the Securities
and Exchange Commission, which must be delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
4
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
and must be accompanied by a letter identifying the case title, civil action number, and
name of this Court; Ashmit Patel as a defendant in this action; and specifying that payment
is made pursuant to this Final Judgment.
Defendant Patel must simultaneously transmit photocopies of evidence of payment
and case identifying information to the Commission’s counsel in this action. By making
this payment, Defendant Patel relinquishes all legal and equitable right, title, and interest
in such funds and no part of the funds will be returned to Defendant Patel.
The Commission will hold the funds (collectively, the “Fund”) until further order of
this Court. The SEC may propose a plan to distribute the Fund subject to the Court’s
approval, and the Court will retain jurisdiction over the administration of any distribution
of the Fund.
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. Defendant Patel must pay post judgment interest on any amounts due
after 30 days of entry of this Final Judgment pursuant to 28 U.S.C. § 1961.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court will
retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Default
Judgment.
V.
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 Default Judgment forthwith and
without further notice.
IT IS SO ORDERED.
DATED: April 26, 2024
MARILYN L. HUFF, District Judge
UNITED STATES DISTRICT COURTOCR text (7,554c · tika · 95% conf)
1
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
ONGKARUCK SRIPETCH; AMANDA
FLORES; BREHNEN KNIGHT;
ANDREW MCALPINE, ASHMIT
PATEL; MICHAEL WEXLER;
DOMINIC WILLIAMS; ADTRON INC.
a/k/a STOCKPALOOZA.COM; ATG
INC.; DOIT, LTD.; DOJI CAPITAL,
INC.; KING MUTUAL SOLUTIONS
INC.; OPTIMUS PRIME FINANCIAL
INC.; ORCA BRIDGE; REDLINE
INTERNATIONAL; and UAIM
CORPORATION,
Defendants.
Case No.: 20-cv-01864-H-AGS
DEFAULT JUDGMENT AGAINST
DEFENDANT ASHMIT PATEL
Pursuant to the Court’s April 15, 2024 order granting Plaintiff Securities and
Exchange Commission (“SEC”)’s motion for default judgment against Defendant Ashmit
Patel pursuant to Federal Rule of Civil Procedure 55(b), (Doc. No. 170), the Court enters
the following final default judgment against Defendant Patel:
Case 3:20-cv-01864-H-BGS Document 174 Filed 04/29/24 PageID.1718 Page 1 of 4
2
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant Patel
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; or
(b) 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 Patel’s officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant Patel or with anyone described in
(a).
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel 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 of the mails, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud; or
(b) 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)
Case 3:20-cv-01864-H-BGS Document 174 Filed 04/29/24 PageID.1719 Page 2 of 4
3
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Defendant Patel’s officers, agents, servants, employees, and attorneys; and (b) other
persons in active concert or participation with Defendant Patel or with anyone described in
(a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel 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.
IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Patel is liable for disgorgement of $918,827.41, representing net profits gained
as a result of the conduct alleged in the operative Complaint, together with prejudgment
interest thereon in the amount of $399,841.00, for a total of $1,318,668.41. Defendant
Patel must satisfy this obligation by paying $1,318,668.41 to the Securities and Exchange
Commission within 30 days after entry of this Final Judgment.
Defendant Patel 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 Patel may also pay by certified
check, bank cashier’s check, or United States postal money order payable to the Securities
and Exchange Commission, which must be delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Case 3:20-cv-01864-H-BGS Document 174 Filed 04/29/24 PageID.1720 Page 3 of 4
4
20-cv-01864-H-AGS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
and must be accompanied by a letter identifying the case title, civil action number, and
name of this Court; Ashmit Patel as a defendant in this action; and specifying that payment
is made pursuant to this Final Judgment.
Defendant Patel must simultaneously transmit photocopies of evidence of payment
and case identifying information to the Commission’s counsel in this action. By making
this payment, Defendant Patel relinquishes all legal and equitable right, title, and interest
in such funds and no part of the funds will be returned to Defendant Patel.
The Commission will hold the funds (collectively, the “Fund”) until further order of
this Court. The SEC may propose a plan to distribute the Fund subject to the Court’s
approval, and the Court will retain jurisdiction over the administration of any distribution
of the Fund.
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. Defendant Patel must pay post judgment interest on any amounts due
after 30 days of entry of this Final Judgment pursuant to 28 U.S.C. § 1961.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court will
retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Default
Judgment.
V.
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 Default Judgment forthwith and
without further notice.
IT IS SO ORDERED.
DATED: April 26, 2024
MARILYN L. HUFF, District Judge
UNITED STATES DISTRICT COURT
Case 3:20-cv-01864-H-BGS Document 174 Filed 04/29/24 PageID.1721 Page 4 of 4