Securities And Exchange Commission v. Appalakutty et al

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
JASON H. LEE (Cal. Bar No. 253140)
JASON M. BUSSEY (Cal. Bar No. 227185)
busseyja@sec.gov
HANNAH CHO (Cal. Bar No. 342289)
choha@sec.gov
AUDREY PAK (Cal. Bar No. 299991)
pakau@sec.gov
Attorneys for Plaintiff
Securities and Exchange Commission
44 Montgomery Street, Suite 700
San Francisco, CA 94104
(415) 705-2500 (Telephone)
(415) 705-2501 (Facsimile)
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff, Case No. 26-cv-00917-CRB
v.
SATISH APPALAKUTTY, LORVEN FUNDS, and
LORVEN ADVISORS LLC, [PROPOSED]
JUDGMENT AS TO
DEFENDANT SATISH
APPALAKUTTY
Defendants,
And
VISTALYTICS INC., Relief Defendant.
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 1 of 6

[PROPOSED] JUDGMENT 	-1-
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
The Securities and Exchange Commission having filed a Complaint and Defendant Satish
Appalakutty (“Defendant”) having entered a general appearance; consented to the Court’s
jurisdiction over Defendant and the subject matter of this action; consented to entry of this
Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from
this Judgment:
I.
IT IS HEREBY 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 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
by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person, or (ii)
disseminating false or misleading documents, materials, or information or making, either orally or
in writing, any false or misleading statement in any communication with any investor or
prospective investor, about:
(A) any investment strategy or investment in securities;
(B) the prospects for success of any product or company;
(C) the use of investor funds;
(D) compensation to any person;
(E) Defendant’s qualifications to advise investors; or
(F) the misappropriation of investor funds or investment proceeds.
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 2 of 6

[PROPOSED] JUDGMENT 	-2-
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
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 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 FURTHER 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 Exchange Act
Rule 10b-5 [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
by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person, or (ii)
disseminating false or misleading documents, materials, or information or making, either orally or
in writing, any false or misleading statement in any communication with any investor or
prospective investor, about:
(A) any investment strategy or investment in securities;
(B) the prospects for success of any product or company;
(C) the use of investor funds;
(D) compensation to any person;
(E) Defendant’s qualifications to advise investors; or
(F) the misappropriation of investor funds or investment proceeds.
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 3 of 6

[PROPOSED] JUDGMENT 	-3-
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
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 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 FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to Sections
21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], and Section 20(b) of
the Securities Act [15 U.S.C. § 77t(b)], Defendant is permanently restrained and enjoined from
directly or indirectly, including, but not limited to, through any entity owned or controlled by
Defendant, participating in the issuance, purchase, offer, or sale of any security; provided,
however, that such injunction shall not prevent Defendant from purchasing or selling securities for
his own personal accounts.
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 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).
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to Sections
21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], and Section 20(b) of
the Securities Act [15 U.S.C. § 77t(b)], Defendant is permanently retrained and enjoined from,
directly or indirectly, acting as or being associated with any investment adviser. For purposes of
this paragraph, a person is associated with an investment adviser if such person is a partner, officer,
or director of such investment adviser (or performs similar functions), or directly or indirectly
controls or is controlled by such investment adviser, including any employee of such investment
adviser.
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 4 of 6

[PROPOSED] JUDGMENT 	-4-
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
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 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 FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay
disgorgement of ill-gotten gains and/or a civil penalty pursuant to Section 20(d) of the Securities
Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. The
Court shall determine the amounts of the disgorgement and civil penalty upon motion of the
Commission. Prejudgment interest shall be based on the rate of interest used by the Internal
Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2).
In connection with the Commission’s motion for disgorgement and/or civil penalties, and at any
hearing held on such a motion: (a) Defendant will be precluded from arguing that he did not
violate the federal securities laws as alleged in the Complaint; (b) Defendant may not challenge the
validity of the Consent or this Judgment; (c) solely for the purposes of such motion, the allegations
of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court may
determine the issues raised in the motion on the basis of affidavits, declarations, excerpts of sworn
deposition or investigative testimony, and documentary evidence, without regard to the standards
for summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. In
connection with the Commission’s motion for disgorgement and/or civil penalties, the parties may
take discovery, including discovery from appropriate non-parties.
VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of
Defendant Satish Appalakutty is incorporated herein with the same force and effect as if fully set
forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth
therein.
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 5 of 6

[PROPOSED] JUDGMENT 	-5-
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
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the
allegations in the Complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this
Judgment or any other judgment, order, consent order, decree or settlement agreement entered in
connection with this proceeding, is a debt for the violation by Defendant of the federal securities
laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the
Bankruptcy Code, 11 U.S.C. § 523(a)(19).
VIII.
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 Judgment.
IX.
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 Judgment forthwith and without further notice.
DATED:
HON. CHARLES R. BREYER
UNITED STATES DISTRICT JUDGE
October 7, 2026
Case 3:26-cv-00917-CRB Document 33 Filed 10/07/26 Page 6 of 6