SEC v. JOHN DOE, No. LR-24766, Southern District of New York (Jan. 1, 2020) — Press Release

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITIES AND
EXCHANGE COMMISSION,

v.

Plaintiff,

PTG CAPITAL PARTNERS LTD, et al.,

Defendants.

15-cv-04290 (LAK)

. ..,Di\Y -- l'
Jl\IENT

d,ZCTRONJC\LLY FILED
l)UC#;

DATE irrru:~

DEFAULT JUDGMENT OF
~ DEFENDANT NEDKO NEDEV

AND NOW, this '2;~ of JJ~U,2020, plaintiff Securities and Exchange

Commission (the "Commission") having filed and served its complaint through alternative

means on Defendant Nedko Nedev ("Defendant"), Defendant's having been found in default for

failing to answer the complaint, and upon the Commission's Motion for Entry of Default

Judgment, the Court hereby grants the Commission's motion and enters final judgment against

Defendant as follows:

I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

permanently restrained and enjoined from violating, directly or indirectly, Section l0(b) of the

Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule lOb-5

promulgated thereunder [17 C.F.R. § 240.1 0b-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.

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 Final 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 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

2

would operate as a fraud or deceit upon the purchaser.

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 Final 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

is pennanently restrained and enjoined from violating Section 14( e) of the Exchange Act [ 15

U.S.C. § 78n(e)] and Rule 14e-8 [17 C.F.R. § 240.14e-8] promulgated thereunder, in connection

with any tender offer or request or invitation for tenders, from engaging in any fraudulent,

deceptive, or manipulative act or practice, by publicly announcing plans to make a tender offer

that has not yet been commenced:

(a) without the intention to commence the offer within a reasonable time and

complete the offer;

(b) intending, directly or indirectly, for the announcement to manipulate the market

price of the stock of the bidder or subject company; or

( c) without the reasonable belief that Defendant ( or a party on whose behalf

Defendant is acting) will have the means to purchase securities to complete the

offer.

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 Final Judgment by personal service or otherwise: (a) Defendant's

3

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 Defendant is liable

for a civil penalty in the amount of $470,000 pursuant to Section 20( d) of the Securities Act [ I 5

U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act [15 U.S .C. § 78u(d)]. Defendant shall

satisfy this obligation by paying $470,000 to the Securities and Exchange Commission within 30

days after entry of this Final Judgment.

Defendant may transmit payment electronically to the Commission, which will provide

detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly

from a bank account via Pay.gov through the SEC website at

http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank

cashier's check, or United States postal money order payable to the Securities and Exchange

Commission, which shall be delivered or mailed to

Enterprise Services Center

Accounts Receivable Branch

6500 South MacArthur Boulevard

Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of

this Court; Nedko Nedev as a defendant in this action; and specifying that payment is made

pursuant to this Final Judgment.

Defendant shall simultaneously transmit photocopies of evidence of payment and case

identifying information to the Commission's counsel in this action. By making this payment,

4

relinquishes all legal and equitable right, title, and interest in such funds and no part

of the funds shall be returned to Defendant. The Commission shall send the funds paid pursuant

to this Final Judgment to the United States Treasury. Defendant shall pay post judgment interest

on any delinquent amounts pursuant to 28 U.S.C. § 1961.

V.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain

5

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

SECURITIES AND 
EXCHANGE COMMISSION, 

v. 

Plaintiff, 

PTG CAPITAL PARTNERS LTD, et al., 

Defendants. 

15-cv-04290 (LAK) 

. ..,Di\Y -- l' 
Jl\IENT 

d,ZCTRONJC\LLY FILED 
l)UC#; 

DATE irrru:~ 

DEFAULT JUDGMENT OF 
~ DEFENDANT NEDKO NEDEV 

AND NOW, this '2;~ of JJ~U,2020, plaintiff Securities and Exchange 

Commission (the "Commission") having filed and served its complaint through alternative 

means on Defendant Nedko Nedev ("Defendant"), Defendant's having been found in default for 

failing to answer the complaint, and upon the Commission's Motion for Entry of Default 

Judgment, the Court hereby grants the Commission's motion and enters final judgment against 

Defendant as follows: 

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 

permanently restrained and enjoined from violating, directly or indirectly, Section l0(b) of the 

Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule lOb-5 

promulgated thereunder [17 C.F.R. § 240.1 0b-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: 

Case 1:15-cv-04290-LAK Document 97 Filed 03/02/20 Page 1 of 5 



(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. 

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 Final 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 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 

2 

Case 1:15-cv-04290-LAK Document 97 Filed 03/02/20 Page 2 of 5 



would operate as a fraud or deceit upon the purchaser. 

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 Final 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is pennanently restrained and enjoined from violating Section 14( e) of the Exchange Act [ 15 

U.S.C. § 78n(e)] and Rule 14e-8 [17 C.F.R. § 240.14e-8] promulgated thereunder, in connection 

with any tender offer or request or invitation for tenders, from engaging in any fraudulent, 

deceptive, or manipulative act or practice, by publicly announcing plans to make a tender offer 

that has not yet been commenced: 

(a) without the intention to commence the offer within a reasonable time and 

complete the offer; 

(b) intending, directly or indirectly, for the announcement to manipulate the market 

price of the stock of the bidder or subject company; or 

( c) without the reasonable belief that Defendant ( or a party on whose behalf 

Defendant is acting) will have the means to purchase securities to complete the 

offer. 

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 Final Judgment by personal service or otherwise: (a) Defendant's 

3 

Case 1:15-cv-04290-LAK Document 97 Filed 03/02/20 Page 3 of 5 



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 Defendant is liable 

for a civil penalty in the amount of $470,000 pursuant to Section 20( d) of the Securities Act [ I 5 

U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act [15 U.S .C. § 78u(d)]. Defendant shall 

satisfy this obligation by paying $470,000 to the Securities and Exchange Commission within 30 

days after entry of this Final Judgment. 

Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly 

from a bank account via Pay.gov through the SEC website at 

http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank 

cashier's check, or United States postal money order payable to the Securities and Exchange 

Commission, which shall be delivered or mailed to 

Enterprise Services Center 

Accounts Receivable Branch 

6500 South MacArthur Boulevard 

Oklahoma City, OK 73169 

and shall be accompanied by a letter identifying the case title, civil action number, and name of 

this Court; Nedko Nedev as a defendant in this action; and specifying that payment is made 

pursuant to this Final Judgment. 

Defendant shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to the Commission's counsel in this action. By making this payment, 

4 

Case 1:15-cv-04290-LAK Document 97 Filed 03/02/20 Page 4 of 5 



relinquishes all legal and equitable right, title, and interest in such funds and no part 

of the funds shall be returned to Defendant. The Commission shall send the funds paid pursuant 

to this Final Judgment to the United States Treasury. Defendant shall pay post judgment interest 

on any delinquent amounts pursuant to 28 U.S.C. § 1961. 

V. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

5 

Case 1:15-cv-04290-LAK Document 97 Filed 03/02/20 Page 5 of 5