2024-07-29 sec-litreleases litigation_release 66 KB 2,367 chars

SEC v. Sivannarayana Barama, No. LR-26060, Northern District of California (July 29, 2024) — Press Release

raw: Sivannarayana Barama

Sivannarayana Barama, No. 5:19-CV-08207-RS (July 29, 2024)

Caption
Securities and Exchange Commission v. Sivannarayana Barama
Source PDF JSON
summary

Former software engineer Sivannarayana Barama was found liable for $8.5 million in an insider trading ring involving Palo Alto Networks, Inc. confidential information.

paragraph

The SEC secured summary judgment against Sivannarayana Barama for his role in an insider trading ring that generated over $7 million in profits. The court ordered Barama to pay $6,283,079 in disgorgement plus $2,179,658 in prejudgment interest. Barama is also permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act and Rule 10b-5.

narrative

The SEC successfully obtained summary judgment against former Silicon Valley software engineer Sivannarayana Barama for his participation in an insider trading ring. Between 2015 and 2018, Barama traded Palo Alto Networks, Inc. securities using confidential earnings tips provided by former IT administrator Janardhan Nellore. The court found Barama liable for approximately $8.5 million, specifically ordering $6,283,079 in disgorgement and $2,179,658 in prejudgment interest. The judgment follows Barama's prior criminal conviction for securities fraud, which precluded further litigation in the SEC's action. The final judgment also includes a permanent injunction against Barama for future violations of the Securities Exchange Act. Barama must satisfy the total $8,462,737 obligation within 30 days of the final disposition of any related criminal appeals.

Enriched metadata

Scheme
insider-trading (100%)
Court
Northern District of California
Case No.
5:19-CV-08207-RS
Disgorgement
$8,462,737
Entity
Sivannarayana Barama
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
18 U.S.C. § 1348(2)Section 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionSivannarayana Barama
Keywords
baramasecsivannarayana baramasecurities exchangeinsider tradingsivannarayanasecuritiesagainstexchange commissionsummary againsttrading ringagainst baramapalo altoalto networksbarama liable

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 5
  • $8.50M $8.5 million $1M–$10M
  • $8.46M $8,462,737 $1M–$10M
  • $7.00M $7 million $1M–$10M
  • $6.28M $6,283,079 $1M–$10M
  • $2.18M $2,179,658 $1M–$10M
Entities 9
  • scheme_term barama was part of an insider trading ring that made over $7 million
  • person final judgment against barama
  • person judge richard seeborg
  • agency sec’s complaint
  • agency sec’s investigation
  • agency sec’s litigation
  • agency sec’s motion for summary judgment against sivannarayana barama
  • agency Securities and Exchange Commission
  • agency their cases with the sec
Triples 16
  • U.S. Securities and Exchange Commission Wins Summary Judgment Against Former Silicon Valley Software Engineer in Multimillion Dollar Insider Trading Ring Case
  • Judge Richard Seeborg granted SEC’s motion for summary judgment against Sivannarayana Barama
  • Judge Richard Seeborg entered final judgment against Barama
  • Judge Richard Seeborg found Barama liable for almost $8.5 million
  • SEC filed its complaint against Barama in December 2019
  • SEC’s complaint alleged Barama was part of an insider trading ring that made over $7 million
  • SEC’s complaint alleged Barama and three other defendants received tips from Janardhan Nellore
  • Barama and other defendants allegedly traded in Palo Alto Networks, Inc.’s securities based on the tips
  • Nellore and three other defendants previously settled their cases with the SEC
  • Court’s order concluded Barama’s conviction in the related criminal case for securities fraud precluded further litigation in the SEC’s action
  • Court’s final judgment permanently enjoins Barama from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
  • Court’s final judgment finds Barama liable for disgorgement of $6,283,079 and prejudgment interest thereon of $2,179,658
  • Court ordered Barama shall satisfy the disgorgement and prejudgment interest obligations by paying $8,462,737 to the SEC within 30 days of any final disposition of the appeal
  • SEC’s litigation was led by John P. Mogg, Chrissy Filipp, and Jason Bussey
  • SEC’s litigation was supervised by Monique C. Winkler and Jason H. Lee
  • SEC’s investigation was conducted by Mr. Mogg, Ms. Filipp, and Crystal Boodoo
PDF (from attached: complaint)
SEC v. JANARDHAN NELLORE · Source
Text layers
Extracted body text (2,367c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26060 / July 29, 2024 Securities and Exchange Commission v. Sivannarayana Barama, No. 5:19-CV-08207-RS (N.D. Cal. filed Dec. 17, 2019) SEC Wins Summary Judgment Against Former Silicon Valley Software Engineer in Multimillion Dollar Insider Trading Ring Case On July 25, 2024, Judge Richard Seeborg of the U.S. District Court for the Northern District of California granted the SEC’s motion for summary judgment against Sivannarayana Barama and entered a final judgment against Barama, finding him liable for almost $8.5 million as a result of insider trading. The SEC filed its complaint against Barama in December 2019, alleging that he was part of an insider trading ring that made over $7 million. The complaint alleged that Barama and three other defendants received tips from Janardhan Nellore, a former IT administrator at Palo Alto Networks, Inc., regarding the company’s confidential earnings information. Barama and the other defendants then allegedly traded in Palo Alto Networks, Inc.’s securities based on the tips before multiple earnings announcements between 2015 and 2018. Nellore and the three other defendants previously settled their cases with the SEC, with judgments entered by the Court against them. In finding Barama liable, the Court’s order concluded that Barama’s conviction in the related criminal case for securities fraud under 18 U.S.C. § 1348(2), United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D. Cal.), precluded further litigation in the SEC’s action. The Court’s final judgment permanently enjoins Barama from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and finds Barama liable for disgorgement of $6,283,079 and prejudgment interest thereon of $2,179,658. The Court ordered that Barama shall satisfy the disgorgement and prejudgment interest obligations by paying $8,462,737 to the SEC within 30 days of any final disposition of the appeal in the related criminal case that does not effect a reversal of the judgment in that action. The SEC’s litigation was led by John P. Mogg, Chrissy Filipp, and Jason Bussey, and supervised by Monique C. Winkler and Jason H. Lee, all of the SEC’s San Francisco Regional Office. The SEC’s investigation was conducted by Mr. Mogg, Ms. Filipp, and Crystal Boodoo.
OCR text (2,367c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26060 / July 29, 2024 Securities and Exchange Commission v. Sivannarayana Barama, No. 5:19-CV-08207-RS (N.D. Cal. filed Dec. 17, 2019) SEC Wins Summary Judgment Against Former Silicon Valley Software Engineer in Multimillion Dollar Insider Trading Ring Case On July 25, 2024, Judge Richard Seeborg of the U.S. District Court for the Northern District of California granted the SEC’s motion for summary judgment against Sivannarayana Barama and entered a final judgment against Barama, finding him liable for almost $8.5 million as a result of insider trading. The SEC filed its complaint against Barama in December 2019, alleging that he was part of an insider trading ring that made over $7 million. The complaint alleged that Barama and three other defendants received tips from Janardhan Nellore, a former IT administrator at Palo Alto Networks, Inc., regarding the company’s confidential earnings information. Barama and the other defendants then allegedly traded in Palo Alto Networks, Inc.’s securities based on the tips before multiple earnings announcements between 2015 and 2018. Nellore and the three other defendants previously settled their cases with the SEC, with judgments entered by the Court against them. In finding Barama liable, the Court’s order concluded that Barama’s conviction in the related criminal case for securities fraud under 18 U.S.C. § 1348(2), United States v. Sivannarayana Barama, No. 19-CR-00463-RS (N.D. Cal.), precluded further litigation in the SEC’s action. The Court’s final judgment permanently enjoins Barama from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and finds Barama liable for disgorgement of $6,283,079 and prejudgment interest thereon of $2,179,658. The Court ordered that Barama shall satisfy the disgorgement and prejudgment interest obligations by paying $8,462,737 to the SEC within 30 days of any final disposition of the appeal in the related criminal case that does not effect a reversal of the judgment in that action. The SEC’s litigation was led by John P. Mogg, Chrissy Filipp, and Jason Bussey, and supervised by Monique C. Winkler and Jason H. Lee, all of the SEC’s San Francisco Regional Office. The SEC’s investigation was conducted by Mr. Mogg, Ms. Filipp, and Crystal Boodoo.

Related documents (3)