Securities And Exchange Commission v. Appalakutty et al

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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
RELIEF DEFENDANT
VISTALYTICS, INC.
Defendants,
And
VISTALYTICS INC., Relief Defendant.
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION
Case 3:26-cv-00917-CRB Document 34 Filed 10/07/26 Page 1 of 3

[PROPOSED] JUDGMENT 	-1-
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The Securities and Exchange Commission having filed a Complaint and Relief Defendant
Vistalytics, Inc. (“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 without admitting the allegations of the Complaint (except as to jurisdiction and except
as otherwise provided herein in paragraph II); 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 shall pay
disgorgement of ill-gotten gains, and prejudgment interest thereon. The Court shall determine
the amount of the disgorgement 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 at any hearing held on such a motion: (a) Defendant will be precluded
from arguing that it 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, the parties may take discovery, including discovery from appropriate non-parties.
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 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
Case 3:26-cv-00917-CRB Document 34 Filed 10/07/26 Page 2 of 3

[PROPOSED] JUDGMENT 	-2-
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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).
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 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 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 34 Filed 10/07/26 Page 3 of 3