U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21378 / January 13, 2010
Court Enters Final Judgments of Permanent Injunction and Other Relief Against Mammen P. Zachariah and Sheldon Nassberg
Securities and Exchange Commission v. Zachariah P. Zachariah, et al., Civil Action No. 08-60698-CIV-JOHNSON
The Securities and Exchange Commission announced that on December 16, 2009, the Honorable Linnea R. Johnson, United States Magistrate Judge for the Southern District of Florida, entered Final Judgments of Permanent Injunction and Other Relief against Defendants Mammen P. Zachariah (Mammen) and Sheldon Nassberg. The final judgments enjoin Mammen and Nassberg from violating Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. In addition, the Court is requiring Mammen to pay disgorgement of $135,747, plus prejudgment interest of $8,106, and a civil penalty of $135,747, and Nassberg to pay disgorgement of $25,571, plus prejudgment interest of $1,526, and a one-time civil penalty of $25,571. Both Mammen and Nassberg consented to the entry of the final judgments without admitting or denying any of the allegations in the complaint.
The Commission commenced this action on May 12, 2008, by filing its complaint against Zachariah P. Zachariah (Zachariah), Mammen and Nassberg, alleging that Zachariah engaged in illegal insider trading based on his trading on material, nonpublic information in the securities of IVAX Corporation and Correctional Services Corporation. The Commission further alleged that Zachariah provided inside information relating to IVAX and Correctional Services to Mammen and Zachariah gave Nassberg inside information relating to Correctional Services. The Commission's case against the remaining defendant, Zachariah, will go to trial in August 2010.
For further information, see LR-20564 (May 12, 2008); LR- 21051 (May 20, 2009).