SEC v. Sameer P. Sethi; Praveen Sethi; and John Weber, No. LR-23904, Eastern District of Texas (Aug. 11, 2017) — Press Release
raw: Sethi Petroleum, et al.
Sethi Petroleum, et al., No. LR-23904 (Aug. 11, 2017)
Sameer P. Sethi perpetrated an oil-and-gas investment fraud, resulting in a $4.16 million order and a permanent securities trading ban.
Sameer P. Sethi was ordered to pay over $4 million in disgorgement and prejudgment interest, as well as a $160,000 civil penalty, for orchestrating a fraudulent oil-and-gas investment scheme. The court found Sethi, his father Praveen, and attorney John Weber in contempt for violating a preliminary injunction by creating Cambrian Resources, LLC, to illegally raise more investor funds. The judgment, entered on August 7, 2017, permanently enjoins Sethi from violating key securities antifraud provisions under the Securities Act and Exchange Act.
Sameer P. Sethi perpetrated an oil-and-gas investment fraud, resulting in a $4.16 million order and a permanent securities trading ban. The U.S. Securities and Exchange Commission obtained a final judgment against Sethi, ordering him to pay over $4 million in disgorgement and prejudgment interest, as well as a $160,000 civil penalty. The court found Sethi, his father Praveen, and attorney John Weber in contempt for violating a preliminary injunction by creating Cambrian Resources, LLC, to illegally raise more investor funds. However, they remedied the violation by shutting down the company and returning the funds to investors. The judgment, entered on August 7, 2017, permanently enjoins Sethi from violating key securities antifraud provisions under the Securities Act and Exchange Act. The case, resolved after a December 2016 summary judgment in the SEC’s favor, is now pending only the receiver’s final report. The litigation was led by SEC attorneys Matthew Gulde and Timothy Evans.
Extracted insights
- $4.00M $4 Million $1M–$10M
- $4.00M $4 million $1M–$10M
- $160K $160,000 $100K–$1M
- person asset freeze
- organization Court
- person final judgment
- person honorable amos l. maz
- organization Receiver
- SEC obtained final judgment
- SEC obtained asset freeze
- SEC appointed receiver
- SEC entered final judgment
- Honorable Amos L. Maz entered final judgment
- U.S. Securities and Exchange Commission obtained a final judgment Sameer P. Sethi for fraudulent oil and gas investment offerings
- SEC obtained an asset freeze against Sameer P. Sethi in connection with fraudulent oil and gas investment offerings
- SEC appointed a receiver against Sameer P. Sethi in connection with fraudulent oil and gas investment offerings
- Court ordered payment more than $4 million by Sameer P. Sethi
- Sameer P. Sethi pay $4 Million
- SEC obtained judgment against Sameer P. Sethi
- SEC obtained asset freeze against Sameer P. Sethi
- SEC appointed receiver for Sameer P. Sethi
- Sethi Petroleum was sued by SEC
- Sameer P. Sethi perpetrated oil-and-gas fraud
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23904 / August 11, 2017 Securities and Exchange Commission v. Sethi Petroleum, et al., No. 15-civ-00338 (E.D. Tex. filed May 19, 2015) Court Orders Perpetrator of Oil-and-Gas Fraud to Pay More than $4 Million The U.S. Securities and Exchange Commission has obtained a final judgment against Sameer P. Sethi, against whom the SEC previously obtained an asset freeze and appointment of a receiver in connection with fraudulent oil and gas investment offerings. The final judgment, entered on August 7, 2017 by the Honorable Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas, orders Sethi to pay more than $4 million in disgorgement and prejudgment interest and a civil penalty of $160,000. The final judgment also permanently enjoins Sethi from the purchase or sale of securities and from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court's entry of judgment, which follows a December 2016 grant of summary judgment to the SEC on all its claims against Sethi, resolves the SEC's litigation in its entirety, pending the receiver's final report. The court previously found Sameer Sethi, his father, Praveen, and their associate, attorney John Weber in contempt for violating the court's preliminary injunction against Sameer. The court found that Weber and the Sethis created a new company, Cambrian Resources, LLC, for the purpose of evading the court's injunction in order to raise additional investor funds. In its contempt order, the court instructed Weber and the Sethis to cease and desist from offering or selling securities and operating Cambrian, and further ordered them to return investment funds to Cambrian's investors. The Sethis and Weber cured their contempt by ceasing operations at Cambrian and returning the money they had raised. The SEC's litigation was led by Matthew Gulde and Timothy Evans and supervised by Jessica Magee.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23904 / August 11, 2017 Securities and Exchange Commission v. Sethi Petroleum, et al., No. 15-civ-00338 (E.D. Tex. filed May 19, 2015) Court Orders Perpetrator of Oil-and-Gas Fraud to Pay More than $4 Million The U.S. Securities and Exchange Commission has obtained a final judgment against Sameer P. Sethi, against whom the SEC previously obtained an asset freeze and appointment of a receiver in connection with fraudulent oil and gas investment offerings. The final judgment, entered on August 7, 2017 by the Honorable Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas, orders Sethi to pay more than $4 million in disgorgement and prejudgment interest and a civil penalty of $160,000. The final judgment also permanently enjoins Sethi from the purchase or sale of securities and from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court's entry of judgment, which follows a December 2016 grant of summary judgment to the SEC on all its claims against Sethi, resolves the SEC's litigation in its entirety, pending the receiver's final report. The court previously found Sameer Sethi, his father, Praveen, and their associate, attorney John Weber in contempt for violating the court's preliminary injunction against Sameer. The court found that Weber and the Sethis created a new company, Cambrian Resources, LLC, for the purpose of evading the court's injunction in order to raise additional investor funds. In its contempt order, the court instructed Weber and the Sethis to cease and desist from offering or selling securities and operating Cambrian, and further ordered them to return investment funds to Cambrian's investors. The Sethis and Weber cured their contempt by ceasing operations at Cambrian and returning the money they had raised. The SEC's litigation was led by Matthew Gulde and Timothy Evans and supervised by Jessica Magee.