In the Matter of Lovelock & Lewes, et al.
Admin. Proc. File No. 3-14321

On April 5, 2011, the SEC filed a complaint against Satyam Computer Services d/b/a Mahindra Satyam (“Defendant”). The complaint alleged that, from at least 2003 through September 2008, the Defendant violated federal securities laws by committing accounting fraud. See Complaint.

The Defendant was ordered to pay a $10,000,000.00 civil penalty. The Clerk was ordered to hold the funds in an interest bearing account with the Court Registry Investment System (collectively, the “Fund”), pending further order of the Court. See Defendant’s Final Judgment. 

The Defendant has paid $10,000,000.00 into the Fund for the distribution to harmed investors.

On November 30, 2011, the SEC filed a motion to transfer and combine the $6,000,000.00 in penalties paid by Lovelock & Lewes, Price Waterhouse, Bangalore, Price Waterhouse & Co., Bangalore, Price Waterhouse Calcutta, and Price Waterhouse & Co., Calcutta, in the related administrative proceeding, In the Matter of Lovelock & Lewes, Exchange Act Release No. 64184 (April 5, 2011), with the Fund for the distribution to harmed investors. See Motion to Transfer Funds.

On December 8, 2011, the Court granted the SEC’s motion and entered an order transferring the funds held in In the Matter of Lovelock & Lewes to the Fund for the distribution to harmed investors. See Order to Transfer Funds.

On September 27, 2016, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.

On October 3, 2016, the Court established a Fair Fund for the $16,000,000.00 in penalties paid by the Defendant and transferred into the Fund from In the Matter of Lovelock & Lewes and appointed Rust Consulting, Inc. as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See Order to Establish a Fair Fund and Appoint a Distribution Agent.

On April 23, 2019, the Commission filed a motion to approve a distribution plan, together with the distribution plan (the "Plan").  See the Commission’s Motion and the Plan.

On April 24, 2019, the Court entered an order that approved the Plan. See the Court's Order.

The Plan provides that the distribution of the Fair Fund shall be made to Eligible Claimants, who timely submit a claim form, in accordance with the Plan of Allocation as detailed in Exhibit A of the Plan.

On August 10, 2021, the Commission filed a motion requesting an order to transfer the Fair Fund, less a reserve of $502,001.17 for taxes and related fees and expenses of the Tax Administrator and the Distribution Agent, to the Fair Fund’s escrow account for distribution by the Distribution Agent to Eligible Claimants pursuant to the Distribution Plan. See the Commission’s Motion. On August 23, 2021 the Court entered an Order approving the Commission’s motion. See Order.

The distribution in this matter is ongoing. 

For more information, please contact the Distribution Agent: 

Rust Consulting, Inc.
Jason Rabe, Program Manager 
Telephone Number: 612-359-2000
Website: http://www.rustconsulting.com/ 
Email: jrabe@rustconsulting.com