2023-08-02 sec-litreleases litigation_release 65 KB 1,612 chars

SEC v. Janardhan Nellore, No. LR-25796, Northern District of California (Aug. 2, 2023) — Press Release

raw: Janardhan Nellore, et al.

Janardhan Nellore, et al., No. LR-25796 (Aug. 2, 2023)

Caption
SEC v. Janardhan Nellore
Source PDF JSON
summary

Former Palo Alto Networks IT administrator Janardhan Nellore reached a final judgment with the SEC to settle charges for orchestrating a multimillion-dollar insider trading ring.

paragraph

Janardhan Nellore agreed to pay $16,614 in disgorgement and prejudgment interest to settle SEC charges of violating federal securities laws. He used his IT credentials to access confidential quarterly earnings information, which he used to trade and tip four friends. The insider trading ring achieved more than $7 million in illegal profits.

narrative

The SEC obtained a final judgment by consent against Janardhan Nellore, a former IT administrator at Palo Alto Networks, Inc. Nellore was at the center of an insider trading ring where he used his IT credentials and work contacts to obtain highly confidential quarterly earnings information. He used this information to trade personally and tip four friends, resulting in over $7 million in illegal profits for the group. To settle the charges, Nellore agreed to pay $16,614 in disgorgement and prejudgment interest and is permanently enjoined from future violations of the Securities Exchange Act. While three of his co-defendants have previously settled, the SEC's action against the final co-defendant, Sivannarayana Barama, is still continuing.

Enriched metadata

Scheme
insider-trading (100%)
Court
Northern District of California
Settlement
$16,614
Disgorgement
$16,614
Victim loss
$7,000,000
Entity
Janardhan Nellore
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionJanardhan Nellore
Keywords
nellorejanardhan nelloresecurities exchangeexchange commissionsecuritiessecagainstjanardhanexchangefinalnellore securitiesinsider tradingtrading ringpalo altoalto networks

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 2
  • $7.00M $7 million $1M–$10M
  • $17K $16,614 $10K–$100K
Entities 5
  • person janardhan nellore
  • company janardhan nellore, a former it administrator at palo alto networks, inc.
  • agency Securities and Exchange Commission
  • person sivannarayana barama
  • court united states district court for the northern district of california
Triples 10
  • Securities And Exchange Commission sued Janardhan Nellore, a former It administrator at Palo Alto Networks, Inc.
  • Janardhan Nellore traded on confidential earnings information about Palo Alto Networks
  • Janardhan Nellore tipped four of his friends to trade on confidential earnings information
  • Janardhan Nellore agreed to pay $16,614 in disgorgement and prejudgment interest
  • Janardhan Nellore was permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
  • Securities And Exchange Commission alleged that Janardhan Nellore used his It credentials and work contacts to obtain highly confidential information about his employer’s quarterly earnings and financial performance
  • Janardhan Nellore and his friends achieved more than $7 million in illegal profits
  • Securities And Exchange Commission filed complaint on December 17, 2019
  • United States District Court for the Northern District of California entered final judgment against Janardhan Nellore on August 1, 2023
  • Securities And Exchange Commission is continuing action against Sivannarayana Barama
PDF (from attached: complaint)
SEC v. JANARDHAN NELLORE · Source
Text layers
Extracted body text (1,612c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25796 / August 2, 2023 Securities and Exchange Commission v. Janardhan Nellore, et al., Civ. Action No. 19-CV-08207-RS (N.D. Cal. filed Dec. 17, 2019) SEC Obtains Final Judgment Against Silicon Valley IT Administrator at the Center of Multimillion Dollar Insider Trading Ring On August 1, 2023, the United States District Court for the Northern District of California entered a final judgment, by consent, against Janardhan Nellore. The Securities and Exchange Commission sued Nellore, a former IT administrator at Palo Alto Networks, Inc., alleging that he traded on confidential earnings information about Palo Alto Networks and tipped four of his friends to do the same, in violation of the federal securities laws. In settling the charges against him, Nellore agreed to pay $16,614 in disgorgement and prejudgment interest, and to be permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC’s complaint, filed on December 17, 2019, alleges that Nellore was at the center of an insider trading ring and used his IT credentials and work contacts to obtain highly confidential information about his employer’s quarterly earnings and financial performance. As alleged in the complaint, Nellore and his friends achieved more than $7 million in illegal profits. Three of Nellore’s co-defendants previously settled the SEC’s action against them. The SEC’s action against the final co-defendant, Sivannarayana Barama, is continuing. SEC Complaint Final Judgment as to Nellore
OCR text (1,612c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25796 / August 2, 2023 Securities and Exchange Commission v. Janardhan Nellore, et al., Civ. Action No. 19-CV-08207-RS (N.D. Cal. filed Dec. 17, 2019) SEC Obtains Final Judgment Against Silicon Valley IT Administrator at the Center of Multimillion Dollar Insider Trading Ring On August 1, 2023, the United States District Court for the Northern District of California entered a final judgment, by consent, against Janardhan Nellore. The Securities and Exchange Commission sued Nellore, a former IT administrator at Palo Alto Networks, Inc., alleging that he traded on confidential earnings information about Palo Alto Networks and tipped four of his friends to do the same, in violation of the federal securities laws. In settling the charges against him, Nellore agreed to pay $16,614 in disgorgement and prejudgment interest, and to be permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC’s complaint, filed on December 17, 2019, alleges that Nellore was at the center of an insider trading ring and used his IT credentials and work contacts to obtain highly confidential information about his employer’s quarterly earnings and financial performance. As alleged in the complaint, Nellore and his friends achieved more than $7 million in illegal profits. Three of Nellore’s co-defendants previously settled the SEC’s action against them. The SEC’s action against the final co-defendant, Sivannarayana Barama, is continuing. SEC Complaint Final Judgment as to Nellore

Related documents (2)